In 2023, companies across various sectors significantly boosted the salaries of their employees, surpassing previous years’ increments and inflation rates. According to the 2024 Compensation and Benefits study by Jobstreet conducted by Seek, the average salary increase stood at an impressive 10.24%, marking a substantial rise from the 7.3% rate seen in 2022 and surpassing the 5.82% average inflation rate of the same year.
The study, which surveyed 685 companies, revealed that a notable 89% of them provided salary raises in 2023, reflecting a substantial increase from the 78% reported in 2022. Among these companies, 36% offered raises ranging between 6% to 10%, while 28% provided increments between 1% to 5%.
According to the report, these increments not only outpaced inflation but also contributed to real wage growth, indicating positive economic development for employees.
Moreover, the study highlighted an increase in career advancement opportunities, with 70% of companies offering staff promotions, compared to 60% in the previous year. Promotions in 2023 came with an average salary increment of 12.54%, further underlining the positive trend in employee compensation.
Additionally, performance bonuses witnessed a significant uptick, with the average bonus increasing to 2.3 months of salary, up from 1.3 months in 2022. Medical insurance and health checks emerged as the most popular financial benefits provided by companies.
In response to evolving work dynamics, companies have also embraced flexible working arrangements. The study found that 51% of companies already offer flexible working hours, with an additional 18% planning to implement this policy within the next 12 months. Half of the surveyed companies also allow flexible working locations, accommodating employees’ preferences to work from places other than the traditional office setup.
Looking ahead, the report suggests that flexible workplaces are becoming the new norm, with only 57% of companies having all their employees fully onsite. The remaining companies offer various forms of remote work arrangements, reflecting shifting employee preferences.
Furthermore, the study highlighted Filipino employees’ inclination towards remote work, with 28% expressing a preference for fully remote work, compared to the global average of 11%. Notably, 46% of Filipino employees favored a hybrid work model, indicating a preference for a blend of remote and onsite work arrangements.