The True Cost of Hiring Locally (And What Most Owners Miss)
A $55,000 admin hire rarely costs $55,000. Here is the full arithmetic — taxes, benefits, desk space, downtime — and how it compares to a Filipino VA.
Most business owners budget for salary and stop there. That single number is the smallest part of what a local hire actually costs you, and the gap between the number on the offer letter and the number that leaves your bank account is where margin quietly disappears.
Start with the loaded cost, not the salary
In the US, employer payroll taxes, workers' compensation, unemployment insurance, and health contributions typically add 20% to 30% on top of base salary. In Australia, superannuation, payroll tax, and leave loading land in the same range. A $55,000 admin role is realistically a $68,000 to $72,000 commitment before anyone touches a keyboard.
- Payroll taxes and statutory contributions: 10-15% of base
- Health cover or superannuation: 8-12% of base
- Paid leave, sick days, and public holidays: roughly 5-6 weeks of paid non-work per year
- Equipment, software seats, and desk space: $2,000-$6,000 in year one
- Recruiter fees: 15-25% of first-year salary if you use an agency
The costs nobody puts in the spreadsheet
Vacancy is the expensive one. The average admin or support role in the US takes six to nine weeks to fill. During those weeks, the work does not stop — it lands on you or on someone billing at a much higher rate. If your time is worth $150 an hour and you absorb ten hours of admin a week for eight weeks, that is $12,000 of opportunity cost before the new hire even starts.
Then there is turnover. Support roles churn faster than any other function in a small business. Every departure resets the clock: another vacancy, another ramp-up, another recruiter invoice.
What the same seat costs with a Filipino VA
A senior Filipino virtual assistant working your hours typically earns $1,200 to $2,000 a month. There are no employer payroll taxes on your side, no health contributions, no desk, no hardware, and no ongoing agency markup when you hire through a placement model.
The comparison that matters is not salary versus salary. It is total annual cost versus total annual cost — and that gap usually runs 60% to 70%.
Take a $1,500 per month VA. That is $18,000 a year, plus a one-time placement fee of $1,200 with ARI Talents. Total year-one cost: $19,200. The equivalent local hire at $55,000 base lands near $70,000 loaded, plus a recruiter fee. You are comparing $19,200 against $80,000 for the same output.
Where local hiring still wins
Be honest about the exceptions. Roles that require a physical presence, a licence tied to your jurisdiction, or in-person client trust are not offshore roles. Neither is anything that needs someone walking a warehouse floor. Everything else — intake, scheduling, CRM hygiene, outbound calling, bookkeeping, listings, inbox — is work that travels perfectly well over a headset.
Run your own numbers
Take the role you are about to post. Add 28% to the salary. Add your recruiter fee. Add eight weeks of your own time covering the gap. Then compare that figure to twelve months of a VA salary plus one placement fee. Most owners find the decision makes itself.