Should you get lucky enough to get a salary increase in 2022, it's unlikely to exceed what you got before the pandemic, if at all, as your boss makes an allowance for rising consumer prices and threats of tighter virus restrictions, according to a survey.
Based on a poll of 435 companies in 10 industries, the median salary increase for 2022 is 5%, that's lower than 5.5% in 2019 pre-COVID, according to global compensation tracker Mercer. The median salary increase in the Philippines is also lower than the 5.4% average in the Asia-Pacific.
“While pay raises have stayed constant in light of the pandemic, employers need to keep a close eye on inflation and how that affects the real salary increase for their employees, especially those on the lower end of the income spectrum. This has intensified the need for organizations to review compensation plans regularly and make any adjustments necessary to ensure their employees are paid competitively," said Floriza Molon, Mercer’s Career Business Leader for Philippines.
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This means that while increases are sometimes based on performance, employers have the big picture of COVID and the rising cost of goods such as fuel, to consider when deciding on salary hikes, if at all.
Those working in energy, life sciences, retail and wholesale and shared services sectors could see their salaries go up by as much as 6%. Those working in high technology could see the biggest jump to 5.8% from 0.2% in 2019, Mercer said.
“Talent in the High Tech space is in demand and it is no surprise that companies in the sector continue to boost salaries to hold on to their people," it said.
Two in five employers in the Philippines said they would not change their headcount while 29% of organizations have not decided whether to increase or decrease it in 2022.
Mercer also noted how companies have cut spending by skipping overtime wages, introducing shorter work weeks and laying off employees. Involuntary attrition for the first half of 2021 rose to 4.8%, compared to 4% in 2020 and 3.5% in 2019, it said.