A significant salary increase is on the horizon—at least according to the latest findings from global professional services firm Mercer's Total Remuneration Survey 2024. The median salary increment for Filipino workers is projected to increase 5.5% in 2025. Based on the 2022 Occupational Wages Survey by the Philippine Statistics Authority (PSA), the average monthly wage for full-time workers in the Philippines is P18,423. A 5.5% increase would translate to an additional P1,013 per month.
However, it's important to note that this is merely a forecast. In 2024, Mercer initially projected a 6.2% increase, but the actual increment ended up being a full percentage point lower at 5.2%.
Salary Increase in the Philippines
In addition to merit-based raises, the majority of employers are allocating 1% of payroll to promotions and 3% to market adjustments. The increase is driven by factors such as inflation, individual performance, and the need to remain attractive to talent.
“It is crucial for HR leaders to adopt a holistic approach to total compensation. This includes salary adjustments, short- and long-term incentives, as well as addressing the evolving well-being needs of employees,” Mercer Philippines Business Leader Floriza Molon said in a press release.
Short-term incentives like bonuses are already offered by 90% of companies, while long-term benefits such as stock options are steadily gaining traction. Flexible benefits are also on the rise, growing from 10% in 2018 to 19% in 2024, as organizations adapt to the preferences of a younger, more dynamic workforce.
Of course, some industries are more in demand than others. Mercer revealed that the energy sector leads in pay just as it did in 2024, now offering salaries 45% higher compared to other industries. The consumer goods sector also stands out for its stability, with employees staying for an average of nine years.
In contrast, the shared services and outsourcing (SSO) industry struggles with the highest employee turnover rate the most, where workers stay for an average of only three years.
Mercer’s Total Remuneration Survey is a widely recognized study that collects comprehensive data on salaries, incentives, and benefits across various industries, offering insights into compensation trends in the current job market.
*This story originally appeared on Spot.ph. Minor edits have been made by the Preview.ph editors.
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