Once you have hired your offshore teammate, the next challenge is making sure they are paid fairly and on time. For many New Zealand businesses, international payroll feels daunting. The common worries are high costs, unpredictable exchange rates, and the risk of late payments. The good news is that modern payment services make the process far simpler and more predictable than most business owners expect.
Why traditional bank transfers fall short
Sending money through your main NZ bank may seem like the default option. In practice, it is often the slowest and most expensive path.
- Hidden margins: Banks rarely use the real mid-market exchange rate. The rate is padded, which means your team member receives less in their account than you intended.
- Layered fees: You will often pay both a fixed international transfer fee and extra intermediary bank charges that are only revealed after the fact.
- Delays: Transfers can take two to five business days to clear. That creates unnecessary stress when you are running payroll.
A better way to pay
Specialist international payment providers such as Wise and Payoneer were designed to address these problems. They show the real mid-market exchange rate, charge a clear fee upfront, and deliver funds quickly. Your staff in the Philippines receive money either directly into their bank account or through instant payment services that connect to all major local banks. These platforms are already familiar to freelancers and contractors in the Philippines, which reduces friction for both sides.
| Feature | Bank wire | Modern platform (e.g., Wise) |
|---|---|---|
| Exchange rate | Bank spread with hidden margin | Real mid-market rate |
| Fees | High and sometimes unclear | Transparent, usually low |
| Speed | Two to five business days | Same day or within hours |
| Convenience | Manual setup each time | Saved recipients and recurring payments |
How to set up a payment in practice
- Create a business account: Platforms such as Wise Business are free to set up and allow you to keep offshore payments separate from personal finances.
- Add your team member: Collect their full name, bank name, and bank account number in the Philippines. Most banks can receive funds instantly once the payment is approved.
- Set currency and amount: Choose NZD to PHP. The platform will show you the exchange rate, fees, and exact amount your staff member will receive.
- Fund the payment: Send the funds from your NZ business bank account, usually via online transfer or debit card.
- Confirm and notify: Both you and your team member receive updates when the payment is processed and completed.
Do a test transfer
Send a small payment first to confirm account details match before processing a full salary.
Pay early
Send funds one or two days before payday to avoid delays from weekends or public holidays.
Agree on fees
Decide in advance whether you or your contractor will cover transaction fees and record it clearly.
Practical payroll checklist
When paying contractors in the Philippines, a few operational details make a big difference.
- Payment schedule: Monthly payments are common, though some teams prefer twice-monthly to reduce exchange rate swings.
- Buffering: Send payments one or two business days before the due date. This avoids cut-off issues and ensures money arrives on time even if there is a delay.
- 13th-month pay: Many Philippine workers expect a 13th-month payment, usually in November or December. It is not a legal requirement for contractors, but it is often seen as best practice and improves retention.
- Holiday timing: Be mindful of both Philippine and New Zealand public holidays. A payment made on a Friday NZT may not clear until Monday if it coincides with a holiday in the Philippines.
- Fee ownership: Decide whether you or your contractor will cover transaction fees. Document this clearly in your agreement.
- Test transfer: Run a small initial transfer to confirm that the account details and recipient name match before sending a full month’s salary.
The bigger picture
International payroll no longer needs to be difficult. With modern services, paying your offshore team is almost as simple as sending money locally. You gain transparency, predictability, and speed. Most importantly, your team gains confidence that they will be paid correctly and on time, which builds trust and strengthens your working relationship. Once the payment process is handled smoothly, you can focus on the real priority: helping your new hire succeed and using offshore talent to grow your business.
Ready to Build Your Team?
Getting payments right is only one part of the puzzle. VentureX helps New Zealand businesses hire directly in the Philippines, handling recruitment, pre-screening, and integration so you can run one high-performing team across two locations.
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