Survey: Workers can expect 6.2% salary increase this year

MANILA, Philippines — Philippine companies are seen to implement a 6.2 percent increase in the median salary of their employees this year in a bid to counter inflationary impact, according to the results of a survey conducted by global professional services firm Mercer.

Based on the results of its Total Remuneration Survey 2023, Mercer said that employees in the Philippines can expect a median salary increment of 6.2 percent for 2024, up from six percent last year.

Results of the survey also found that the merit increase forecast for 2024 is at 5.5 percent.

Mercer said the projected hike in median salary increment could  be attributed to factors such as the rising demand for skilled professionals, the need to attract and retain top talent in a fiercely competitive job
market, and persistent inflationary pressures.

“The Philippines is poised for economic growth despite some global headwinds. Some industries will continue to hire as businesses, particularly in shared services and outsourcing industry, retail and
consumer sector expand,” Mercer Philippines Business Leader Floriza Molon said.

Mercer said that salary increments are expected to remain consistent year-on-year across most industries this year.
It said the energy sector is projected to experience the highest salary increase at seven percent.

This is followed closely by high tech (6.8 percent), retail & wholesale (6.7 percent), and consumer goods (6.5 percent.) industries as they continue to invest more in their talent management strategy including
promotions and market adjustments.

“Besides compensation, companies would need to reassess their total rewards programs focusing on the employee benefits and work experience,” Molon said.
The professional services firm noted that the 6.2 percent median salary increase in the Philippines is higher than the average in Asia of 5.2 percent.
This reflects the varying pay progression between emerging and developed economies in the region.

“India, Vietnam and Indonesia report the highest projected median salary increments for 2024 at 9.3 percent, 7.0 percent and 6.5 percent respectively, while Japan, Taiwan, and Hong Kong SAR report
the lowest at 2.6 percent, 3.8 percent and 3.9 percent respectively,” Mercer said.

Other countries included in the survey are Singapore (4.2 percent), South Korea (4.4 percent), Thailand (4.7 percent), Malaysia (5.1 percent), and mainland China-Shanghai (5.2 percent).
The survey, conducted between April and June last year, collected data from 454 organizations across various industries in the Philippines.