If you are a working professional in the Philippines, this article will be highly beneficial for you. Please take the time to read it and learn about the anticipated salary and minimum wage increases in the Philippines in 2024.
Philippines Salary Increase 2024
Employees in the Philippines have reason to be optimistic about 2024, as a significant salary increase is on the horizon. This increase is driven by the Salary Standardization Law of the Philippines, which mandates yearly salary adjustments based on prevailing economic conditions.
Budget considerations for wage hikes continue to be influenced by inflationary pressures and concerns over maintaining a competitive labor market. According to the proposed legislation, the Department of Budget and Management (DBM) will implement a revised four-tranche payment increase schedule, starting January 1, 2024, and continuing annually through 2027.
The Philippines Salary Increase System aims to enhance employee accountability and efficiency, while also eliminating the need for individual wage negotiations. This article will delve into the specifics of the Philippines Salary Increase 2024.
Philippines Daily Minimum Wage
The daily minimum wage in the Philippines remained steady from 2023 to 2024, at 610 PHP per day. It’s important to know that each province has a different minimum pay. The minimum wage in the Philippines has risen from 89.00 PHP/day in 1989 to a peak of 610.00 PHP/day in 2023. From 1989 to 2024, the average daily wage has been 354.32 PHP.
As of January 2024, Metro Manila (the National Capital Region) has the highest real minimum wage at 505.23 Philippine pesos per day. Following this, Region IV-A, or CALABARZON, has a minimum wage of 420.71 Philippine pesos per day.
Under Wage Order No. IVA-19, published on June 14, 2022, the provincial daily minimum wages in Calabarzon (Region IV-A) have been increased. This wage hike applies to all private sector employees, regardless of their job, status, designation, or mode of salary payment, for a standard workday not exceeding eight hours.
Expected Salary and Minimum Wage Increase in the Philippines
Various factors impacting the labor market are expected to drive median wage growth for Filipino workers from 6% in 2023 to 6.2% in 2024. Additionally, businesses in the Philippines are still projecting a total median wage increase of 5.7% for 2024.
Since the onset of the pandemic, average salary increases have been steadily rising. Similar trends have been observed across the country’s diverse industries this year. The rising demand for highly skilled workers and the need to retain top talent in a competitive market are significant contributors to these salary adjustments. Ongoing inflationary pressures also play a crucial role.
Certain industries are expected to see higher demand than others. According to Mercer, the energy sector is likely to receive the highest salary increase at 7%. Other sectors, such as consumer goods, retail and wholesale, and high tech, are expected to follow closely, with projected increases of 6.8%, 6.7%, and 6.5%, respectively.
Final Discussion
Southeast Asia, long recognized as a hub of economic growth, continues to attract global talent. As the region faces the possibility of a looming recession, the dynamics of wage increases, employee turnover, and workforce stability become increasingly important. In these challenging times, merely raising salaries isn’t sustainable for businesses, which must balance human costs with profitability and other factors.
Interestingly, in the broader Asian context, the salary increase in the Philippines stands out. Certain sectors, including shared services, outsourcing, retail, and consumer goods, are expected to continue hiring as they expand. Employers in the Philippines will likely maintain competitive benefits packages in 2024 to attract and retain a substantial workforce, as this trend is set to persist.
DBM Local Salary Increase Budget Circular PDF
For more information, visit www.dbm.gov.ph
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FAQs
What salary is considered high in the Philippines?
The highest salary is PHP 109,200 per month. Earning more than this places you in the upper-income range. The average annual family income in the Philippines was P307,190 as of the 2021 census.
How much is the typical salary increase each year?
The national average raise is 3% for employees who meet their goals and employer expectations. U.S. employers are planning to give raises of 3.5% for merit increases and 3.9% for total salary increases for non-unionized employees.
Will there be a salary increase in 2024 in the Philippines?
The proposed measure outlines that the Department of Budget and Management (DBM) will implement a revised four-tranche payment hike schedule starting on January 1, 2024, and continuing annually until 2027.