Projected salary increases in the Philippines for next year will be lower than the regional average in Asia Pacific, according to a recent poll conducted by asset management firm Mercer.
Mercer’s latest Total Remuneration Survey (TRS) found that the median pay increase in the country is expected at 5% next year, with increases across all industries.
However, this is lower than APAC’s projected median salary increase of 5.4%, reflecting the divergence in pay progression between emerging and developed economies.
Other peers in the region are expected to report higher salary increments of as high as 9% in Pakistan, and as low as 2.3% in Japan.
In the Philippines, the High Tech industry is expected to record the highest improvement in the median salary from 5% to 5.8%, followed by Retail and Wholesale up 0.7% to 6%, and Consumer Goods up 0.2% to 5.2%.
The highest salary increases are expected in the energy, life sciences, retail and wholesale, and shared services sectors which expect increases of 6% next year, while the lowest increases are in the chemical, manufacturing, and non-financial services sectors.
“Talent in the High Tech space is in demand and it is no surprise that companies in the sector continue to boost salaries to hold on to their people,” said Mercer’s Career Business Leader for Philippines Floriza Molon.
“The salary increments for industries that are dependent on consumer spending like retail and wholesale and consumer goods, show that consumer spending is on the uptrend as the Filipino economy continues its path toward recovery,” she added.
Two in five Philippine employers said they had no plans of changing their headcount, while many have reported cuts in spending by skipping overtime wages, implementing shorter work weeks, and layoffs.
“We see companies exercising greater prudence around recruitment in the short term, with their immediate priority being keeping their businesses afloat. This has had material impact on the economy as jobs may not be created fast enough to satisfy the demand,” said Molon.
“More Filipinos are not earning enough even if they hang on to their jobs, and are therefore on the hunt for more work. Until the pandemic situation stabilizes and granular lockdowns are lifted, jobs and livelihoods in the country will continue to be affected,” she added.
The latest data available from the Philippine Statistics Authority (PSA) indicates that there were 4.25 million jobless Filipinos in September, reflecting an unemployment rate of 8.9% — the highest rate since January this year.—AOL, GMA News