There are three main methods that people use when paying a VA or outsourced worker in the Philippines.
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Outsourcing Provider
If you are using an outsourcing provider or an established company that provides outsourcing services then you will be able to pay them directly, in your local country and currency. The outsourcing companies will pay the worker on your behalf and will also take care of payroll taxes, government filings, and any legal risks. This method is the easiest and most secure way of paying a Filipino worker.
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Freelancing Platforms
If you are using a website like Elance or ODesk there will be a payment mechanism directly on the website that you have to use if you found your work through their site. Sites like Elance take a small commission from each transaction set up by them. An escrow type system is used to ensure that the worker gets paid and that the job gets done before the funds are released.
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Xoom, Western Union, etc...
If you have found your worker on your own then Xoom is an easy and popular way to send money to the Philippines. Once you release the funds through Xoom the worker can pick up the money from any one of thousands of places in the Philippines. A service similar to Xoom is Western Union. Unfortunately, there is no oversight using this method so you should only pay out the funds once you are sure the work has been completed.
