How do I use Wise to pay independent contractors in the Philippines?

Setting up a Wise account

Step 1: Go to the Wise website or download the app

Visit wise.com or download the Wise app from the App Store (iOS) or Google Play Store (Android).

Step 2: Sign up for an account

Click Sign Up and enter your email address. When prompted to choose an account type, select Business Account — this is the recommended option for hiring independent contractors.

Step 3: Verify your identity

Provide your personal details (name, address, date of birth) and upload a valid government-issued ID such as a passport or driver's license. If registering a business, you will also need to submit business details and proof of incorporation.

Step 4: Link a bank account or payment method

Add your funding source — this can be a bank account, credit/debit card, or existing Wise balance. Wise may ask you to verify the connection through a small test deposit.

Step 5: Set up multi-currency accounts (optional)

Wise allows you to hold balances in multiple currencies. You can add PHP (Philippine Peso) or USD to make transactions smoother.

Adding independent contractors as recipients

Step 1: Obtain the contractor's payment details

Ask your contractor for their full name, email address, and bank details (bank name, account number, and SWIFT/BIC code if paying in USD). Confirm which currency they prefer to receive: PHP or USD.

Note: Some contractors already have Wise accounts, while others do not. Ask for their preference — whether they would like to be paid directly to their Wise account or to their local bank account.

Step 2: Add the recipient in Wise

Navigate to Recipients and click Add Recipient. Enter the contractor's details and save them for future transactions.

Transferring money to independent contractors

Step 1: Start a new transfer

Click Send Money, select the currency, and enter the amount.

Note: We recommend sending the contractor's salary in your currency (e.g., USD) while the recipient receives PHP. This means any exchange rate fluctuations are carried by the contractor rather than you. Contractors are accustomed to handling these fluctuations.

Step 2: Select the payment method

Choose between a bank transfer, debit/credit card, or Wise balance. Bank transfers are generally the most cost-effective option.

Note: If you are paying a contractor $1,000 USD, send the exact amount and any fees will be deducted from their payout. If you prefer to cover the fees, add a few extra dollars on top of the agreed salary so the contractor's take-home pay is not affected.

Step 3: Review transfer fees and exchange rates

Wise displays transparent fees and real mid-market exchange rates. Check the estimated delivery time before confirming.

Note: You can schedule a specific delivery date for the transfer. We recommend scheduling at least 2 to 5 days before the contractor's payday to avoid potential delays. For example, if the payout date is the 10th of the month, schedule the transfer on the 7th or 8th.

Recurring transfers can also be set up to match your payout schedule. This is optional, as salaries may vary due to leave without pay, adjustments, or other deductions.

Step 4: Confirm and send

Double-check all details before confirming. Wise will provide a tracking link so you can monitor the transfer progress.

Best practices for successful and cost-efficient transfers

Timing your transfers

Avoid weekends and public holidays, as banking delays may occur.
Send funds at least 3 to 5 days before payday.
Always check Wise's estimated delivery time before sending.

Optimizing exchange rates and fees

Use Wise's mid-market rate for the best available exchange rate.
Compare fees between sending in USD vs. PHP to determine which is more cost-effective.
Avoid using credit cards where possible, as they typically incur higher fees than bank transfers.

Ensuring accuracy

Always double-check recipient details to prevent failed transactions.
Use saved recipients in Wise to avoid re-entering details each time.
Encourage contractors to verify their Wise account to prevent payment hold-ups.

Managing recurring payments

For regular payroll, set up recurring transfers in Wise to automate the process.
If paying multiple contractors simultaneously, use batch payments (available in Wise Business accounts).

Compliance and documentation

Keep records of all transfers for tax and compliance purposes.
Download Wise's monthly statements for bookkeeping as needed.
Ensure contractors issue proper invoices in line with your agreement.

Additional considerations

Emergency fund: Maintain a small Wise balance to cover urgent or unplanned payments.
Contractor communication: Keep contractors informed of expected transfer timelines.
Tax and compliance: Be aware of your tax obligations regarding contractor payments in your country.