Philippines Salary Increase News 2024: Expected Salary and Minimum Wage Increase in the Philippines
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Philippines Salary Increase News 2024. If you are a working professional in the Philippines, then this article is quite beneficial for you. Please read this post and get to know about the Philippines Salary Increase 2024: Expected Salary and Minimum Wage Increase in the Philippines.
Philippines Salary Increase 2024
Employees in the Philippines have reason to look forward to 2024, as they will soon experience a significant salary increase. This is due to the Salary Standardization Law of the Philippines, which mandates annual salary revisions based on current trends.
Budget planning for these wage increases is influenced by inflationary pressures and concerns about maintaining a competitive labor market.
According to the proposed law, starting on January 1, 2024, and continuing annually until 2027, the Department of Budget and Management (DBM) will implement an amended four-tranche payment rise schedule.
This system aims to eliminate the need for one-on-one wage negotiations and improve employee accountability and efficiency. In this post, we will discuss the details of the Philippines Salary Increase 2024.
Philippines Daily Minimum Wage
The minimum wage in the Philippines remained steady from 2023 to 2024, at 610 PHP per day. It’s important to note that minimum wage rates vary by province. The minimum wage increased from 89.00 PHP/day in 1989 to an all-time high of 610.00 PHP/day in 2023. From 1989 to 2024, the average daily wage was 354.32 PHP.
As of January 2024, Metro Manila (the National Capital Region, NCR) has the highest real minimum wage at 505.23 PHP per day. Region IV-A, or CALABARZON, follows with a minimum wage of 420.71 PHP per day.
According to Wage Order No. IVA-19, published on June 14, 2022, the daily minimum wage rates for Calabarzon (Region IV-A) in the Philippines have been raised. This increase applies to all private sector employees, regardless of job status, designation, or mode of salary payment, for a regular workday that does not exceed eight hours.
Expected Salary and Minimum Wage Increase in the Philippines
Several significant factors are expected to influence the labor market, causing the median wage growth for Filipino workers to rise from 6% in 2023 to 6.2% in 2024. Businesses in the Philippines are budgeting for a 5.7% total median wage rise in 2024.
Since the pandemic, the average income increase has been gradually rising. This trend has been seen across various industries in the country. The growing need for highly qualified workers and the need to retain top talent in a competitive market are major contributors to this pay adjustment. Ongoing inflationary pressures also play a significant role.
Demand varies across industries. According to Mercer, the energy sector is expected to see the largest pay increase at 7%. Other industries such as consumer goods, retail and wholesale, and high tech are predicted to see growth of 6.8%, 6.7%, and 6.5%, respectively.
Final Discussion
Southeast Asia, including the Philippines, has historically been a hub of economic progress, attracting talent from around the world. As the region faces the possibility of an impending recession, the dynamics of wage increases, employee turnover, and workforce stability become more important. Simply increasing pay isn’t sustainable during challenging times, as businesses need to balance human costs and profitability.
Remarkably, in the larger Asian context, the pay rise in the Philippines is unique. Certain industries, including shared services and outsourcing, retail, and consumer sectors, will continue to grow and hire. Employers in the Philippines will likely continue offering perks in 2024 to attract and retain a sizable workforce, as this trend is expected to persist.