Overseas Filipino Workers (OFWs) play a crucial role in supporting their families and contributing to the Philippine economy through remittances. Many OFWs leave their homeland in search of better opportunities, higher salaries, and a chance to improve their quality of life. One of the professions that has seen a significant number of Filipinos working abroad is accountancy.
This article will focus on the salaries of Filipino accountants working in the UK, particularly in public accounting firms. Filipino accountants can better assess their prospects and make informed decisions about working abroad if they understand the potential earnings and career progress in the field.
Salaries of Accountants in Public Accounting Firms
This article is based on a YouTube video by OFW vlogger Aldz Tayag. If you want to watch the full video, then click on the link below:
Summary of Key points:
- UK public accounting firm salaries vary by role, experience, and firm size.
- Senior Associate: £45,000/year (₱262,000/month), up to £50,000/year (₱291,000/month).
- Assistant Manager: £50,000/year (₱291,000/month), up to £60,000/year (₱350,000/month).
- Manager: £55,000/year (₱320,000/month), up to £65,000/year (₱379,000/month).
- Senior Manager: £75,000/year (₱437,000/month).
- Director: £85,000/year (₱495,000/month).
- Salaries vary by location, firm size, and qualifications.
- Gross salaries do not account for deductions like PAYE tax, National Insurance, and pension contributions.
- UK salaries are higher than in the Philippines, but costs of living are also higher.
- Challenges include homesickness, cultural adaptation, and navigating UK tax and social security systems.
- Strong support systems and financial planning are crucial for success.
- Opportunities for professional growth and additional certifications in the UK.
Overview
In the UK, accountants working in public accounting firms, often referred to as “practice,” can expect varying salaries based on their roles, experience, and the size of the firm they work for. These firms include well-known names such as PwC, KPMG, Deloitte, and others. For Filipino accountants, having a Certified Public Accountant (CPA) qualification is essential to securing a job in these firms. The starting position for a CPA in the UK is typically at the senior associate level.
Senior Associate
The senior associate role is not the entry-level position; it is a step above associate, who are still working towards becoming qualified accountants in the UK. A senior associate can expect to earn an average of £45,000 per year, which translates to approximately ₱262,000 per month. High-caliber candidates might earn up to £50,000 per year or around ₱291,000 per month.
Assistant Manager
Some accounting firms have an assistant manager level, while others do not. The average salary for this role is similar to that of a high-caliber senior associate, around £50,000 per year. However, it can go up to £60,000 per year, which is about ₱350,000 per month.
Manager
A manager in a public accounting firm usually starts with an annual salary of £55,000 or ₱320,000 per month. Experienced and high-caliber managers can earn up to £65,000 per year, approximately ₱379,000 per month. This role involves managing teams, client accounts, and ensuring the delivery of high-quality services.
Senior Manager
Senior managers typically earn around £75,000 per year, which equals ₱437,000 per month. This role involves more responsibilities and requires significant experience and expertise. Senior managers often oversee large projects, mentor junior staff, and play a key role in strategic decision-making within the firm.
Director
The director position, just below partner level, starts at £85,000 per year or ₱495,000 per month. Directors are often responsible for overseeing large teams and managing significant client accounts. They play a crucial role in business development, client relationships, and the overall growth of the firm.
Salary Variations
It is important to note that these salaries are averages and can vary based on the location within the UK, the size of the firm, and the individual’s experience and qualifications. Cities with higher costs of living, such as London, might offer higher salaries compared to other regions. Additionally, larger firms with more resources might offer more competitive salaries than smaller firms.
Gross vs. Net Salary
The salaries mentioned above are gross salaries, meaning they do not account for deductions such as Pay As You Earn (PAYE) tax, National Insurance, and pension contributions. These deductions can significantly impact the take-home pay of accountants working in the UK. Understanding the difference between gross and net salary is crucial for financial planning and budgeting.
Comparison with Philippine Salaries
When comparing these salaries to those in the Philippines, it is clear that working as an accountant in the UK offers substantially higher earnings. However, it is also essential to consider the higher cost of living, potential homesickness, and the need to adapt to a new culture and environment. In the Philippines, the average salary for an accountant is significantly lower, making the UK an attractive option for those seeking financial growth.
Challenges and Considerations
While the prospect of earning higher salaries is appealing, Filipino accountants must also prepare for the challenges of working abroad. These include dealing with homesickness, adapting to a different work culture, and navigating the complexities of the UK tax and social security systems. It is crucial to be mentally and emotionally prepared for these challenges to succeed and thrive in a foreign country.
Homesickness and Cultural Adaptation
Working away from home can be challenging, especially for those who are close to their families. Homesickness is a common issue among OFWs, and it requires a strong support system and coping mechanisms. Additionally, adapting to the UK’s work culture, language, and social norms can take time and effort. Building a network of fellow Filipinos and seeking support from community organizations can help ease the transition.
Financial Planning and Budgeting
Understanding the cost of living in the UK is essential for effective financial planning. While salaries may be higher, expenses such as housing, utilities, transportation, and food can also be significant. Creating a budget and managing finances wisely can help ensure a comfortable and sustainable lifestyle. Additionally, saving and investing part of the earnings can provide long-term financial security.
Professional Growth and Development
Working in a public accounting firm in the UK offers opportunities for professional growth and development. Accountants can gain valuable experience, enhance their skills, and build a strong professional network. Pursuing additional certifications and attending training programs can further enhance career prospects. Filipino accountants should take advantage of these opportunities to advance their careers and achieve their professional goals.
For Filipino accountants considering a move to the UK, the potential for higher earnings and career advancement is significant. However, it comes with its own set of challenges and responsibilities. By understanding the salary structure and career progression in public accounting firms, Filipino accountants can make informed decisions and better prepare for their journey abroad. As always, thorough research and preparation are key to a successful transition and a rewarding career overseas.