Hey fellow professionals in the Philippines, this article is for you! Dive in to discover what’s in store for 2024: Expected Salary and Minimum Wage Increase in the Philippines.
Philippines Salary Increase 2024
That’s great news for employees in the Philippines! With the upcoming significant salary increase in 2024, workers have a lot to look forward to. The Salary Standardization Law plays a crucial role in ensuring that salary revisions align with current trends.
It’s interesting to note that the budget planning for these wage increases takes into account factors like inflationary pressures and concerns about maintaining competitiveness in the labor market. This reflects a thoughtful approach to ensuring that the salary adjustments not only keep pace with the cost of living but also contribute to a balanced and competitive work environment.
The proposed four-tranche payment rise schedule, set to begin on January 1, 2024, and extend annually until 2027, provides a clear roadmap for employees to anticipate and plan their finances accordingly. It’s a positive step that shows the government’s commitment to supporting the workforce and addressing economic realities.
Employees can now eagerly await the positive impact this salary increase will have on their livelihoods, and this initiative could potentially enhance overall job satisfaction and economic well-being across the country. It’s a welcome development for the workforce, and the phased approach over the next few years adds a layer of predictability that can be beneficial for both employers and employees alike.
Exploring the 2024 Philippines Salary Increase System: Enhancing Accountability and Efficiency
Philippines Daily Minimum Wage
In 2024, the minimum wage in the Philippines remains unchanged at 610 PHP per day. It’s important to recognize that minimum wages vary by province. Over the years, there has been an increase from 89.00 PHP/day in 1989 to the current peak of 610.00 PHP/day in 2023. The average daily wage from 1989 to 2024 stands at 354.32 PHP.
As of January 2024, Metro Manila boasts the highest real minimum wage at 505.23 Philippine pesos per day, while Region IV-A, or CALABARZON, follows closely with a minimum of 420.71 Philippine pesos per day. Notably, Wage Order No. IVA-19, published on June 14, 2022, has elevated the provincial minimum wages in CALABARZON for all private sector employees. This increase applies to employees of various roles, statuses, designations, or modes of salary payment, covering a standard workday lasting up to eight hours.
Expected Salary and Minimum Wage Increase in Philippines?
In 2024, the median wage growth for Filipino workers is expected to increase from 6% in 2023 to 6.2%, reflecting the impact of key factors in the labor market. Despite this, businesses in the Philippines are budgeting for a slightly lower total median wage rise at 5.7%. Since the past epidemic, there has been a gradual rise in average income, a trend observed across various industries this year. This increase is driven by the demand for highly skilled workers, the necessity to retain top talent in a competitive landscape, and the ongoing pressures of inflation.
Certain industries are experiencing higher demand than others, and Mercer predicts that the energy sector is poised to receive the most substantial pay increase at 7%. Close behind are other sectors such as consumer goods, retail and wholesale, and high tech, with expected growth rates of 6.8%, 6.7%, and 6.5%, respectively.
Final Discussion
Southeast Asia, historically a hub of economic progress, attracts talent globally. As the region grapples with the potential of an impending recession, factors like wage increases, employee turnover, and workforce stability take center stage. In these challenging times for businesses, merely increasing pay isn’t a sustainable solution. Companies must navigate and manage human costs and profitability, among other considerations, to thrive in the face of economic uncertainties.
