The average salary of Filipinos is expected to increase by 5.5% in 2025, according to a recent study by global consulting firm Mercer. This translates to an additional monthly income of approximately ₱1,013 for workers earning the 2022 average wage of ₱18,423, based on data from the Philippine Statistics Authority.
The report highlights that Philippine companies are allocating portions of their payroll budgets for promotions (1%) and market adjustments (3%), addressing inflation, labor market demands, and workforce competitiveness. Mercer Philippines business leader Floriza Molon emphasized that the increase reflects companies’ commitment to investing in their employees amid a competitive talent landscape.
Drivers of growth
The salary boost is attributed to factors such as individual work performance, inflation, and companies’ efforts to remain competitive in attracting and retaining talent. Most firms surveyed plan to refine compensation packages, including basic salary, allowances, and bonuses.
Incentives on the rise
The study also found that 90% of Philippine firms offer short-term incentives like bonuses, while long-term incentives, such as stock options, were provided by about 21% of organizations in 2024 — slightly higher than the previous year. Additionally, flexible benefits have grown in popularity, with a 9-percentage-point rise since 2018.
Sector trends
Among industries, the energy sector emerged as the highest-paying, offering base salaries 45% above the national average. It also had the lowest voluntary attrition rate (8%), indicating strong employee retention. Conversely, the shared services and outsourcing industry reported the highest attrition rate at 17%, driven by younger workers seeking career growth. Employees in this sector typically stay for an average of three years, compared to nine years in the consumer goods sector.
Mercer’s Total Remuneration Survey 2024 analyzed trends from 482 Philippine companies, representing over 2,200 job positions, to provide these insights.
