Filipino Professionals Expected to Get Highest Pay Hike Since Pandemic

Global advisory and brokerage firm, Willis Towers Watson (WTW) conducted a survey last April – May which covered 6,945 organizations in the Asia Pacific, with 385 companies in the Philippines, and stated that companies are allocating an average median salary increase for next year of 5.7%. This is a rise compared to the 5.5% increase for this year.

“This is the highest salary increase budgeted since the pandemic,” states WTW.

The survey conducted showed that 52.5% of employers in the Philippines budgeted more salary increases for 2022 in comparison to 2021.

The WTW indicated three main reasons for companies giving higher budget salaries for this year. This includes, rising supply costs, a tight labor market, and employees expecting increases in light of inflation.

The Bangko Sentral ng Pilipinas says that inflation is estimated to peak come October. The current situation of increasing prices of services and goods is an area of concern for Philippine employers as the pandemic continues, Several businesses were unable to survive in a “high inflation” conditions

“Compounding economic conditions and new ways of working are leading organizations to continually reassess their salary budgets to remain competitive,” says Philippines leader of Work & Rewards for WTW, Mr. Patrick Marquina.

According to Marquina, despite the predicted rise in salary, companies would still have to present a clear compensation strategy more in the factors that influence these increases.

Data shows that fintech companies are expected to have the largest increase at 7.1% and on the other side, high tech and pharmaceutical companies will have the lowest increase of 5.7%.

Source: Philstar