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Construction Labor Costs in the

Philippines Updated 2024
PinasHardware

7–8 minutes

Determining labor costs for construction projects in the

Philippines requires a thorough understanding of various factors
such as the skill levels of workers, project location, and
complexity of the project’s design.

Labor costs can vary based on the skill and role of the worker,
while the project location greatly influences the rates of their
wages. For example, areas that have a low demand for labor
tend to have lower wages when you compare it to areas that
have a high demand for labor due to the difference in the cost of
living. In addition, the complexity of the project’s design also
impacts labor costs because the more intricate the design of a
project is, the more skilled workers are needed in the said
project which leads to an increase in labor costs.

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Below, you’ll find information on how to calculate labor costs and

the factors that can affect expenses in such projects.

How to Calculate Labor Cost

To calculate the labor cost of a construction project, you should

start by estimating the total number of labor hours that are
required to complete the project. Then, determine the labor
rates for different types of workers needed for the project. In the
Philippines, construction workers typically work 8-hour shifts, 5
times a week, with a total of 40 hours per week for each worker.
Workers are paid an average hourly rate of ₱50.00 to ₱100.00,
resulting in weekly wages of ₱2,000.00 to ₱4,000.00 per worker.
Multiply the number of weeks needed for the project by the
weekly salary per worker to calculate the labor cost.

According to studies, labor costs should ideally range between

20% to 40% of the total budget for a construction project.
However, this figure is based only on the standard industry
methodologies which means that the labor cost could vary for
each project. In addition, factors such as the cost of materials,
the scope of your project, and the different types of labor that
are needed to complete the project can significantly influence

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the project’s total cost.

Labor Price List in Construction

The construction labor costs vary based on the worker’s

position. On average, the hourly wage of the lowest positioned
construction worker, the laborer ranges from ₱53.00 to ₱68.00
per hour while the foreman who is considered to be the highest
position in the construction site, earns around ₱100.00 per hour.

Position Rate per Hour

Foreman ₱100.00

Electrician ₱90.00

Plumber ₱90.00

Operator ₱80.00

Skilled Laborer ₱68.00

Light-skilled laborer ₱64.00

Unskilled laborer ₱53.00

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Factors Influencing Home Building Expenses in

the Philippines

Location and Accessibility

The location of the land you wish to purchase significantly

influences its price, with rural and urban areas exhibiting
fluctuating costs. Moreover, construction expenses vary
between these locations due to factors like building regulations,
construction site accessibility, labor costs, and material costs
with rural areas being a whole lot cheaper than urban areas.

Size and Complexity

The size and complexity of a building significantly impact its

construction cost, especially when intricate designs are
involved. A more complex architectural design would require
special materials and skilled workers, driving up the overall cost.
Similarly, a larger home would require more materials and labor,
also impacting the project’s overall costs.

Choice of Materials

The cost of a construction project can vary depending on the

type of materials that you choose. High-quality materials
typically have a higher initial cost compared to standard
materials, which can impact the overall project cost. However,
opting for high-quality materials can help reduce maintenance
expenses in the long run, making it a more cost-effective choice
over time. Certain projects that would need imported materials
can be more costly due to tariffs and transportation expenses.

Labor Costs and Availability

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The labor costs of a construction project can vary depending on

the worker’s skill level, demand, and the location of the project.
Skilled workers who can efficiently and quickly do their tasks
have higher wages, especially in places that have high demands
for construction workers. The availability of workers greatly
influences their wages, with remote areas potentially facing
shortages of workers and higher wages due to a limited
workforce.

Permits, Licenses, and Taxes

All building construction projects will require you to comply with

the local building codes, obtain permits and licenses, and pay
taxes. These are unavoidable expenses in construction projects,
and any delays or failure in acquiring these requirements can
lead to additional costs due to project delays and fines for non-
compliance.

Inflation and Currency Fluctuations

Economic conditions, including inflation and currency

fluctuations, significantly impact the overall cost of any
construction project. Fluctuations in inflation rates and currency
values can greatly impact the cost of the project’s materials,
equipment, and workers’ wages. Inflation can result in increased
prices for materials and services over time, while the fluctuation
of currencies affects the cost of imported materials and
equipment that some projects may also need.

FAQs

What factors influence labor costs in the Philippine

construction industry?

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Labor costs in the Philippine construction industry are influenced

by various factors, including the workers’ wages, availability of
skilled labor, project location and complexity, government
regulations, economic conditions, and the cost of living.

How do the wage rates vary across different regions of the

Philippines?

The wage rate in the Philippines differs depending on the

project’s location, with urban areas having significantly higher
wages when you compare it to rural or provincial areas. For
example, areas like Metro Manila typically have higher wage
rates due to higher living costs and demand for skilled labor.

How much is construction cost per square meter in the

Philippines?

The average cost of constructing a house in the Philippines

typically ranges from ₱8,000.00 to ₱30,000.00, depending on
factors such as location and house design.

What are some strategies for optimizing labor efficiency on

construction projects?

Strategies for optimizing labor efficiency on construction projects

include proper planning and scheduling, effective
communication, providing adequate resources to workers, and
maintaining a safe and conducive work environment.

What is the percentage of labor cost?

For most construction projects, labor costs should ideally range

between 20% to 40%.

How much is labor cost per day?

In the Philippines, labor costs can vary depending on the

construction project’s location and the skills of the workers. On

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average, the cost of a single worker could range from ₱500.00

to ₱800.00.

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