Salary Increase Philippines 2024: New Salary and Minimum Wage Increase Coming This Month
If you are a professional in the Philippines who works, you will find this article to be very helpful. Learn about the Philippines Salary Increase 2024: Expected Salary and Minimum Wage Increase in the Philippines by reading this post.
Philippines Salary Increase 2024
Employees in the Philippines have reason to look forward to 2024 because they will soon experience a significant increase in pay. The Philippines’ Salary Standardization Law, which establishes yearly salary revisions based on current trends, is in charge of the nation’s wage increases.
Concerns about a competitive labor market and inflationary pressures continue to impact budget planning for wage increases. As per the proposed legislation, an amended four-tranche payment rise schedule would be created by the Department of Budget and Management (DBM) and would be implemented annually until 2027, beginning on January 1, 2024.
Apart from eliminating the need for individual wage negotiations, the Philippines Salary Increase System aims to enhance worker accountability and productivity. We’ll go into great detail about the Philippines Salary Increase 2024 in this post.
Philippines Daily Minimum Wage
From 2023 to 2024, the minimum wage in the Philippines remained at 610 PHP per day. You should be aware that each province in the nation has a different minimum wage. From 89.00 PHP per day in 1989 to an all-time high of 610.00 PHP per day in 2023, the Philippines’ minimum wage grew. The average daily wage was 354.32 PHP between 1989 and 2024.
As of January 2024, the National Capital Region (NCR), or Metro Manila, has the highest real minimum wage of 505.23 Philippine pesos per day. Region IV-A, or CALABARZON, was next, with a minimum salary of 420.71 Philippine pesos per day.
The province rate of daily minimum wages for Calabarzon (Region IV-A) in the Philippines has increased, per the June 14, 2022 publication of Wage Order No. IVA-19. The increase in the minimum wage is applicable to all private sector workers, irrespective of their employment status, designation, or method of compensation, provided that their workday does not surpass eight hours.
Expected Salary and Minimum Wage Increase in Philippines?
It is anticipated that the labor market’s major factors will result in an increase in the median wage growth for Filipino workers, from 6% in 2023 to 6.2% in 2024. Furthermore, Filipino businesses are still planning for a 5.7% increase in the overall median wage in 2024.
The average income has also been gradually increasing since the epidemic a few years ago. Similar trends have been observed in a number of the country’s industries this year. The need to retain top talent in a competitive industry and the growing need for highly qualified workers are the main causes. The ongoing pressures of inflation have a significant impact on this pay adjustment as well.
Certain industries have greater demand than others. The energy sector is the one most likely to see the biggest pay increase—7%, according to Mercer. High tech, retail and wholesale, and consumer goods are not far behind with predicted growth rates of 6.8%, 6.7%, and 6.5%, respectively.
Final Discussion
Southeast Asia is a magnet for talent because it has long been a center of global economic development. With the possibility of an approaching recession, the dynamics of wage increases, employee turnover, and workforce stability become increasingly significant. In these difficult times, businesses need to control costs associated with labor and profitability in addition to pay increases.
Surprisingly, the pay increase in the Philippines is unprecedented in the greater Asian context. A few sectors, like shared services and outsourcing, retail, and consumer goods, will continue to hire as they expand. Given that this trend is likely to continue, employers in the Philippines will most likely continue to offer benefits in 2024 in an effort to attract and retain a sizable workforce.
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