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Row of laptops with headsets in a modern office environment ready for communication.
Photo: MART PRODUCTION / Pexels

Cebu and Iloilo Floor Operators Train Korean and Japanese LLMs at ₱18,000 a Month

BPO operators in the Visayas pivoted entire floors to AI annotation work. The labor code on the payslip does not describe what the agents actually do.

Carlo Cruz profile image
by Carlo Cruz

The night shift in Cebu and Iloilo does not sound like a call center anymore. The headsets are off, the screens are full of Korean menu photos and Japanese receipts, and the agent's job is to tell a model in Seoul or Osaka which character is a 7 and which is a 1. Starting pay sits at around ₱18,000, lower than what the same floor paid for voice work in recent years.

Cebu and Iloilo BPO operators have been pitching themselves to Korean and Japanese LLM vendors as a cheaper option for annotation work, and the pitch lands because Filipino workers are literate in two scripts the buyers care about: English for instructions, hiragana and hangul recognizable enough after a short training run. The contracts come in as data services, not voice, and the billing rates per labeled hour are a fraction of what the same client would pay a Tokyo vendor.

The job that has no name on the payslip

Inside the contracts, the work goes by names like data labeling specialist, AI training associate, or content moderator-annotator. The Philippine Statistics Authority released the 2022 Updates to the 2012 Philippine Standard Occupational Classification, which were described as incorporating new and emerging occupations that had formed since 2012, but HR departments are still filing annotators under generic clerical or customer service codes. That choice then sets the wage floor, the night differential rules, and the SSS contribution brackets.

The mismatch is doing real work for the employer. Without a specific code applied on the payslip, there is no benchmark salary, no recognized skill premium for bilingual annotation, and no clear basis for the hazard pay that should attach to reviewing graphic content for moderation contracts bundled into the same scope. Agents reviewing flagged Korean livestream clips at 2 a.m. are coded the same as agents tagging restaurant receipts.

Why the Visayas got the pivot first

Cebu and Iloilo have the cheapest English-speaking labor pool with stable fiber and a workforce that can absorb a script-recognition module without relocating. Operators have been losing voice accounts to other markets and to AI-handled tier-one queues, so annotation contracts let them keep the seats warm at lower margins. The Korean and Japanese vendors get a workforce that already understands shift discipline and SLA penalties.

The catch for the worker is that ₱18,000 is the new ceiling dressed up as a starting rate. Voice agents on offshore-language accounts had cleared more with night differential and language premium baked in. Annotation contracts strip the language premium because the vendor argues the work is visual, not linguistic, even when the agent has to read the Korean to decide what the label should be.

What the gap actually costs

Labor advocates and BPO workers have flagged the classification problem because the code on the payslip determines what an inspector can challenge. Until the annotation role is recognized in practice, with skill tiers and a wage floor that reflects bilingual review, the contracts will keep getting drafted in categories that look like clerical work. The floor that used to pay for a Korean voice account will pay less for labeling the data that replaces it.

Carlo Cruz profile image
by Carlo Cruz

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