Salaries in the Philippines are expected to see a notable increase in 2024. According to the recent Total Remuneration Survey 2023 conducted by Mercer, a global professional services firm, the median salary increment for Filipino employees is set to rise by 6.2 percent. This marks a slight increase from the 6 percent rise seen in 2023.
The forecasted increase is attributed to several factors influencing the job market, including the growing demand for skilled professionals and the ongoing need to retain top talent in an increasingly competitive environment. Additionally, persistent inflationary pressures have been identified as a key driver behind this anticipated salary adjustment.
Industry-wise, the energy sector is anticipated to lead with the highest salary increase at 7%. Close behind are sectors such as high tech, retail and wholesale, and consumer goods, with expected increments of 6.8 percent, 6.7 percent, and 6.5 percent, respectively. Meanwhile, the predicted merit increase stands at 5.5% for 2024.
In a broader Asian context, the salary increase in the Philippines is notably higher than the regional average of 5.2%. While countries like India, Vietnam, and Indonesia are projecting even higher increases, nations such as Japan, Taiwan, and Hong Kong are at the lower end of the scale.
Mercer Philippines Business Leader Floriza Molon commented on the country’s economic prospects, highlighting the potential growth despite global challenges. She pointed out that certain industries, particularly in shared services, outsourcing, retail, and consumer sectors, are expected to continue hiring as businesses expand.
In addition to salary increments, Mercer also emphasizes the importance for companies to focus on employee benefits and the overall work experience to ensure a satisfied and productive workforce.