Salary Increases in 2023 Were Apparently Enough to Beat Inflation
What's next, pigs flying?
(SPOT.ph) You and I might not feel it, but Filipino workers reportedly enjoyed a huge boost in their earnings in 2023, with salary increments exceeding the inflation rate—at least that’s according to the latest findings from Jobstreet by SEEK's 2024 2024 Compensation and Benefits report.
You read that right. Companies in the Philippines adjusted employee salaries upward by an impressive average of 10.24% in 2023. This doesn't just exceed the average increase of 7.3% but also topped the national inflation rate of 5.82% recorded in 2022.
“It's encouraging to note that this average increment surpasses the national annual inflation rate of 5.82% in 2022. This means that employees not only regained lost ground but also saw real wage growth, reflecting an improved economic climate and brighter prospects for the workforce,” Jobstreet said.
Also read: Here Are the Philippines’ Highest Paying Jobs, According to the PSA
Has salary kept up with inflation in the Philippines?
An overwhelming majority of firms—89% to be exact—opted to grant pay raises in 2023, too, showing a noticeable improvement from the 78% recorded in 2022. The breakdown of these increases revealed that of the 685 surveyed companies, 36% gave salary hikes between 6% to 10%, while 28% gave between 1% to 5%.
2023 also marked a year of enhanced career advancement opportunities, with 70% of the companies offering promotions, compared to 60% in the prior year. Promotions in 2023 came with an even more generous average salary increment of 12.54%, underscoring a potential for career development in the Philippine workforce.
Still, in that same year a Social Weather Survey (SWS) revealed that more Filipino families felt poorer as inflation rose from 49% in December 2022 to 51% in January 2023. It’s also worth noting that inflation went up the fastest pace in 14 years during that period.
This metric “has remained sluggish for several years despite considerable inflation [which] indicates that poor families have been lowering their living standards, i.e., belt-tightening,” according to SWS.
Also read: Why Your Salary Just Can't Keep Up With Inflation