How Much Does a Lawyer Charge for a Demand Letter in the Philippines?

A practical guide to fees, what’s included, and how to get value—written for clients and non-lawyers.

Quick answer (ballpark figures)

In the Philippines, professional fees for a lawyer-prepared demand letter typically range from around ₱3,000 to ₱30,000+ for straightforward matters. Fees can be higher (₱40,000–₱100,000+) for complex, high-stakes, or urgent cases, or when extensive review and negotiations are expected.

Those figures are not fixed and can vary widely depending on the lawyer, the firm, and the work involved. The rest of this article explains why fees vary, what you should expect to get for your money, and how to control costs.

What a demand letter is—and why it matters

A demand letter is a formal written notice asserting your rights and demanding payment or performance (e.g., return of property, compliance with a contract) within a deadline, often 10–15 days. In Philippine practice, a demand letter can:

Place the other party in legal delay (mora), strengthening claims for interest, damages, or attorney’s fees under the Civil Code.
Interrupt prescription for certain claims when sent as an extrajudicial demand, helping preserve your right to sue.
Serve as evidence of good-faith efforts to settle and of the other party’s refusal or inaction.
Prompt settlement—many disputes end here, avoiding litigation costs and time.

Notarization? Demand letters are usually not notarized (they’re not affidavits). What matters is proof of delivery—e.g., registered mail with return card, reputable courier with tracking, or personal service with acknowledgement.

What lawyers consider when pricing a demand letter

Complexity of the facts and law
- Simple unpaid invoice vs. multi-year, multi-party contract breach.
- Need to analyze voluminous documents, technical regulations, or cross-border issues.
Amount in dispute / stakes
- Higher exposure typically justifies deeper analysis, tighter drafting, and partner oversight.
Urgency (rush fees)
- “Same day” or weekend work usually costs more.
Pre-draft work
- Conflict checks, client intake, document review, legal research, strategy calls.
Negotiation scope
- A pure “draft-and-send” is cheaper than a package that includes follow-up calls/emails, counter-proposal review, and drafting settlement agreements.
Reputation and seniority
- Senior counsel and larger firms charge more; provincial rates are often lower than Metro Manila rates (but not always).
Administrative logistics
- Printing, annex preparation, service by courier, proof-of-service packages.
Risk allocation
- Some engagements include capped hours; others are flat fees with defined scope.

Common pricing structures

Flat fee (most common). One price for a defined scope—e.g., review up to X pages of documents, draft 1 demand letter, 1 revision round, send by courier, and 1 follow-up email.
Hourly billing. Typical for uncertain or complex matters; rates vary widely (e.g., ₱2,500–₱10,000+ per hour depending on seniority and firm).
Blended or capped fee. A hybrid: time-based work subject to a cap; useful for cost control.
Contingency or success fee (less common for demand letters alone). More typical in collections work; may combine a modest upfront fee plus a percentage of amounts recovered if negotiations succeed. Ethically, contingency fees must be reasonable and clearly agreed in writing.

What’s usually included in the fee

A well-scoped demand-letter engagement typically covers:

Intake & strategy call (30–60 minutes).
Document review (contracts, invoices, receipts, correspondence).
Drafting of the demand letter:
- Statement of facts and contractual/legal basis
- Precise demand (amount or performance)
- Deadline and mode of compliance
- Consequences of non-compliance (e.g., interest, attorney’s fees, filing of suit)
- Attachments/annex references where helpful
One round of revisions after your comments.
Service logistics (sending via registered mail/courier; preparing proof of service).
Short follow-up (e.g., 1–2 chase emails or a brief call with the other side).

Negotiation add-ons. Extended phone calls with the other party, multi-round counter-offers, or drafting a settlement agreement are often billed separately or under an hourly/capped arrangement.

Typical add-on costs you may see

Courier / registered mail: ₱150–₱800+ depending on distance and number of annexes.
Printing / annex preparation: modest but can grow with voluminous attachments.
Translations (if needed) or bilingual versions.
Rush fee for same-day or weekend turnaround.
VAT (12%) if the lawyer or firm is VAT-registered.
Withholding tax: Corporate clients commonly withhold a percentage of professional fees and issue a 2307; individuals typically don’t withhold.

Example fee scenarios (illustrative only)

Simple unpaid invoice (₱50,000 outstanding; documents are clear)
- Flat fee ₱5,000–₱12,000
- Includes 1 draft, 1 revision, courier service, and 1 follow-up email
Employment-related demand (e.g., final pay, COE, small wage claims)
- Flat fee ₱5,000–₱15,000
- May include brief legal analysis of Labor Code provisions and employer policies
Contract breach with damages (₱2M claim, multiple annexes)
- Flat fee ₱20,000–₱50,000+ or hourly with a cap
- Includes strategy memo, tighter legal framing, negotiation calls
High-stakes commercial dispute (₱20M+, multiple counterparties)
- ₱60,000–₱150,000+, often hourly blended with partner oversight
- May include pre-litigation roadmap and settlement term sheet

How to keep costs under control (client checklist)

Define scope in writing. Specify what’s included: number of drafts, who sends the letter, and how many follow-ups.
Prepare a tight brief. Give a timeline, key facts, and clean copies of contracts/invoices. Clear facts reduce drafting time.
Prioritize attachments. Send only relevant and legible annexes; label them.
Decide on tone and goal. Settlement-oriented vs. hardline. Mixed signals cause rewrites.
Set a realistic deadline. 10–15 calendar days is common; align with courier timelines.
Choose service method early. Registered mail with return card or reputable courier with tracking.
Ask for a cap or flat fee. If using hourly billing, request status updates at fixed time checkpoints.

What a strong Philippine demand letter contains

Parties and relationship (with correct legal names and addresses).
Statement of material facts in clear chronological order.
Legal basis (contract clauses, law, or equitable grounds).
Exact demand (amount, actions to take, where/how to pay or perform).
Deadline (date certain) and business day clarification if needed.
Consequences of non-compliance (legal interest, suit, damages, attorney’s fees).
Annex list (if attached).
Signature block of counsel; firm details and contact information.
Proof of service to be kept on file (registry receipt, tracking, or signed acknowledgement).

Tone matters. Philippine courts and regulators appreciate professionalism. Overly aggressive or defamatory language can backfire and, in rare cases, create separate liabilities.

Ethical and professional considerations

Reasonable fees. The Code of Professional Responsibility and Accountability requires fees to be fair and reasonable, considering time, labor, novelty, importance, amount involved, and results achieved.
Clear engagement terms. Best practice is a written fee agreement stating scope, fee basis, taxes, and billing cadence.
Confidentiality & conflicts. Your lawyer will perform conflict checks and keep your information confidential.
No guarantees. Lawyers may estimate likelihoods but should not guarantee a result.
Client funds & OR. Expect an official receipt for fees and, if you advanced costs, proper liquidation.

VAT, withholding, and receipts—what to expect

VAT (12%) applies only if your lawyer/firm is VAT-registered. If not VAT-registered, you may see percentage tax indirectly reflected in pricing, but not as a separate VAT line.
Expanded Withholding Tax (EWT): If you are a corporate client, you generally withhold a percentage from professional fees and issue Form 2307; align on the rate before billing.
Individuals typically do not withhold and just pay the invoiced amount (plus VAT if applicable).

Should you send the letter yourself to save money?

You can draft your own letter, but having counsel sign and send it often:

Signals seriousness and legal readiness;
Improves legal framing (interest, damages, attorney’s fees clauses);
Reduces back-and-forth by getting the issues right the first time; and
Preserves better evidence for litigation if needed.

If budget is tight, consider a limited-scope engagement: the lawyer drafts and you send it (or vice versa), with clear documentation of service.

Frequently asked questions (Philippine context)

1) Is an in-person meeting necessary? Not usually. Many engagements are handled via email/Zoom, with scanned documents and e-signatures.

2) Do I need to notarize the demand letter? Generally no. Focus on proof of delivery.

3) How fast can it be done? A simple demand letter can be drafted within 1–3 working days once documents are complete; rush is possible at added cost.

4) What if the other party ignores it? Your lawyer may send a final notice and then proceed to file a case or initiate other remedies (e.g., barangay conciliation for covered disputes, if required).

5) Can I recover attorney’s fees? Possibly, if there is a contractual stipulation or if the case falls under exceptions recognized by law and jurisprudence (e.g., bad faith). Courts evaluate reasonableness and may reduce excessive claims.

6) Is barangay conciliation required first? For covered disputes where parties reside in the same city/municipality and the law applies, Lupon proceedings may be a condition precedent before filing in court. A demand letter can still be useful beforehand.

Red flags when shopping for fees

No written scope or refusal to issue an OR.
Unusually low “template” prices that exclude essential steps (document review, proof of service, revisions).
Guaranteed outcomes or threats that look unprofessional.
Hidden add-ons sprung after you’ve committed.

A simple budgeting template

Professional fee (flat): ₱________
Courier / registered mail: ₱________
Printing / annex prep: ₱________
Optional negotiation block (X hours @ ₱____/hr): ₱________ (capped at ₱______)
VAT (if applicable): ₱________
Estimated total: ₱________

Bottom line

Expect ₱3,000–₱30,000+ for a standard, lawyer-signed demand letter in the Philippines; more if complex or urgent.
Insist on a clear, written scope, and prepare your documents to save time and money.
A well-crafted demand letter, properly served and documented, often resolves disputes cost-effectively—long before court becomes necessary.

This article is general information for the Philippine setting and not a substitute for tailored legal advice. For a precise quote, share your documents and goals with counsel and request a written scope and fee proposal.