If you are a working professional in the Philippines, this article will prove beneficial to you. Read on to discover information about the Philippines Salary Increase 2024: Expected Salary and Minimum Wage Increase in the Philippines.
Philippines Salary Increase 2024
In anticipation of the upcoming significant salary increase in 2024, employees in the Philippines are eagerly awaiting the implementation. The Salary Standardization Law of the Philippines, responsible for these annual revisions, adjusts salaries based on current economic trends.
Budget planning remains influenced by inflationary pressures and the competitive labor market landscape. As per the proposed law, starting January 1, 2024, until 2027, the Department of Budget and Management (DBM) will establish a revised four-tranche payment schedule.
The Philippines Salary Increase System aims to streamline wage negotiations, enhancing employee accountability and efficiency by eliminating the need for individual wage discussions. Stay tuned as we delve into the specifics of the Philippines Salary Increase for 2024 in this article.
Philippines Daily Minimum Wage
The minimum wage in the Philippines remained unchanged from 2023 to 2024, staying at 610 PHP per day. It’s important to note that minimum wages vary by province across the country. From 1989 to 2023, Philippine minimum wages have seen a notable increase from 89.00 PHP per day to a peak of 610.00 PHP per day.
As of January 2024, Metro Manila, or the National Capital Region (NCR), boasts the highest real minimum wage at 505.23 Philippine pesos per day. Following closely, Region IV-A, or CALABARZON, sets its minimum wage at 420.71 Philippine pesos per day.
According to Wage Order No. IVA-19 published on June 14, 2022, the daily minimum wage for Calabarzon (Region IV-A) has been raised. This increase applies to all private sector employees, ensuring fair compensation for a standard workday not exceeding eight hours.
Expected Salary and Minimum Wage Increase in Philippines?
Several significant factors impacting the labor market are projected to result in median wage growth for Filipino workers increasing from 6% in 2023 to 6.2% in 2024. Businesses in the Philippines are also planning for a total median wage increase of 5.7% in 2024.
Since the recent pandemic, average wage increases have gradually risen. Similar trends have been observed across various industries nationwide this year. The rising demand for highly skilled workers and the necessity to retain top talent in a competitive environment significantly influence these salary adjustments, exacerbated by ongoing inflationary pressures.
Certain industries experience higher demand compared to others. Mercer forecasts the energy sector to lead with the highest expected pay increase of 7%. Consumer goods, retail and wholesale, and high-tech industries follow closely with anticipated growth rates of 6.8%, 6.7%, and 6.5%, respectively.
Final Discussion
Southeast Asia remains a magnet for global talent due to its historical economic prowess. Amid the looming prospect of a recession, the dynamics of wage increases, employee turnover, and workforce stability take on heightened significance. Simply increasing wages is not sustainable for businesses navigating challenging economic conditions, where managing human costs and ensuring profitability are paramount.
Interestingly, within the broader Asian context, the Philippines stands out with its unique approach to salary increases. Industries such as shared services and outsourcing, retail, and consumer sectors continue to expand their workforce. In 2024, Philippine employers are likely to maintain attractive perks to attract and retain a robust workforce, underscoring a continuing trend.
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