Philippine Salaries Expected to Increase by 6.2% This Year

(SPOT.ph) Filipino employees have a reason to look forward to the year 2024, as a significant salary increase is on the horizon—at least according to the latest findings from conducted by global professional services firm Mercer's Total Remuneration Survey 2023.

The median salary increment for Filipino workers is projected to increase 6.2% in 2024 from 6% in 2023 in response to several key factors impacting the job market. For the most part, we have the increasing demand for skilled professionals and the need to retain top talent in a competitive market to thank. Persistent inflationary pressures also play a critical role in this salary adjustment.

Of course, some industries are more in demand than others. Mercer revealed that the energy sector is poised to witness the highest salary increase at 7%. Other sectors like high tech, retail and wholesale, and consumer goods are not far behind, with projected increases of 6.8%, 6.7%, and 6.5% respectively.

Meanwhile, merit increase is forecasted at 5.5% in 2024.

Also read: Here Are the Philippines’ Highest Paying Jobs, According to the PSA

Salary increase in the Philippines

Interestingly, the salary increase in the Philippines stands out in the broader Asian context. Mercer found that the country's median surpasses the Asian average of 5.2%. Countries like India, Vietnam, and Indonesia are projecting even higher increments, while Japan, Taiwan, and Hong Kong are on the lower end of the scale.

“The Philippines is poised for economic growth despite some global headwinds,” Mercer Philippines Business Leader Floriza Molon said in a press release. “Some industries will continue to hire as businesses, particularly in shared services and outsourcing industry, retail and consumer sector expand.”

Besides salary, Mercer advises companies to focus on employee benefits and overall work experience to maintain a satisfied and productive workforce.

Also read: Why Your Salary Just Can't Keep Up With Inflation