According to a Mercer report, the Philippines is said to experience a marked economic shift in 2025 as salaries are expected to increase by an average of 5.5%. This reflects the country’s efforts toward improving the lives of millions of workers in various sectors.
Wage Increase Overview
According to Mercer’s 2024 Total Remuneration Survey, companies in the Philippines are preparing for an average salary increase of 5.5% in 2025, slightly more than the 5.2% rise of 2024. This further reflects the competitive market for talent while, at the same time, highlighting the continued intent of organizations in the Philippines to invest in their human resources.
Reasons for the Increase
However, this wage increase is a result of several critical factors. Companies are recognizing and rewarding employees for services rendered as well as for their accomplishments. Compensation packages are also aligned with industry standards to attract and retain high-performing employees. Necessary adjustments have also been made to keep pace with living expenses.
Besides these, companies allocate 1% of their payroll budgets for promotions and another 3% for market adjustments, which include salary and benefits adjustment to address labor market conditions, inflation, and others.
Regional Wage Orders
Beyond this average pay increase, an estimated 5 million workers would benefit from the newly approved wage increases between PHP 21 and PHP 75 per day across 14 regions of the country in the private sector. Again, these adjustments are aimed at keeping pace with affordability and payments in relation to the cost of living and ensuring fair returns across various sectors.
Effect on Household Help
Also, household assistants have benefited from wage increases in nine areas. For example, in Metro Manila, household helpers now receive an increase of PHP 500 in their monthly income bringing the minimum wage to PHP 7,000. The relief is expected by more than 717,508 household assistants nationwide, making it a fair reward for their essential services.
In-Line with the Sector
The Energy industry is the Philippines’ most well-paid sector, with its annual base salaries 45% above average. The workers in this industry, too, left the least, with an 8% attrition rate in 2023. Conversely, the highest attrition level, which stands at 17%, belongs to the Shared Services and Outsourcing industry because this youthful population is occasionally termed to seek opportunities to advance.
Future Outlook
Projected in 2025 are salary increases and regional wage adjustments, which are signs of positive aspirations in the Philippines for workers’ livelihoods. The government and private sector are fostering productive economic growth by bridging regional inequities, initiating productivity programs, and ensuring transparent processes of wage determination.
In the meantime, vigilance and overt action must remain the order of the day to be able to confront challenges in places like Bicol and Davao so that no worker gets left behind in this endeavor to promote fairness and equity in the labor market.