Given the talent shortage businesses will face this year, the median pay increase budget in the Philippines is projected to reach 5.7% in 2024. The anticipated increase matches the 5.7% actual wage increase WTW reported in its compensation survey. The survey also mentioned that the average income increase in the nation has been increasing “steadily” over the past four years following the epidemic.
Philippines Salary Increase 2024:
Employees in the Philippines have reason to look forward to 2024 since they will soon see a significant pay increase. The Philippines’ compensation Standardization Law establishes yearly compensation modifications based on current trends and oversees the nation’s wage hikes.
Concerns about a competitive job market and inflationary pressures continue to impact budget planning for pay increases. According to the proposed law, starting on January 1, 2024, the Department of Budget and Management (DBM) would design an adjusted four-tranche payment increase schedule that would be applied yearly until 2027.
Apart from eliminating the need for individual salary negotiations, the Philippines Salary Increase System aims to enhance worker accountability and productivity. This essay will explore the Philippines’ Salary Increase in 2024.
Philippines Daily Minimum Wage:
From 2023 to 2024, the minimum wage in the Philippines remained at 610 PHP per day. You should be aware that each province in the nation has a different minimum wage. From 89.00 PHP per day in 1989 to 610.00 PHP per day in 2023, the Philippines’ minimum salary grew. The average daily wage was 354.32 PHP between 1989 and 2024.
As of January 2024, the National Capital Region (NCR), or Metro Manila, has the highest real minimum wage at 505.23 Philippine pesos daily. Region IV-A, or CALABARZON, was next, with a daily minimum income of 420.71 Philippine pesos.
The province’s daily minimum wage rate for Calabarzon (Region IV-A) in the Philippines has increased, according to the June 14, 2022, issue of Wage Order No. IVA-19. The rise in the minimum wage applies to all private sector workers, irrespective of their employment status, designation, or compensation method, provided that their workday does not surpass eight hours.
The industries with the most significant predicted wage gains, at 6%, are Financial Services, Shared Services, and Outsourcing. Reports from other sectors:
- Retail trade and consumer goods (5.9%)
- Life Sciences and BioPharma (5.8%)
- Technology (58.8%)
- Engineering, construction, and real estate combined (5.7%).
- Production (5.7%).
Will the Philippines’ Minimum Wage and Expected Salary Increase?
The labor market’s major factors are anticipated to increase Filipino workers’ median salary growth from 6% in 2023 to 6.2% in 2024. Furthermore, Filipino businesses are still planning for a 5.7% increase in the overall median salary in 2024.
The average salary has also progressively increased since the outbreak a few years ago. Similar trends have been observed in several of the country’s businesses this year. The necessity to retain top talent in a competitive industry and the expanding need for highly skilled people are the leading causes. The continued pressures of inflation have a considerable impact on this wage adjustment as well.
Specific industries have greater demand than others. According to Mercer, the energy sector will likely see the most considerable wage increase—7%. High-tech, retail and wholesale, and consumer goods are not far behind, with anticipated growth rates of 6.8%, 6.7%, and 6.5%, respectively.