Workers in the country are projected to have an average increase of 5.6 percent in their salary this year, the Salary Budget Planning Report of global advisory, broking, and solutions firm Willis Towers Watson (WTW) said.
The average salary increase in the Philippines this year, however, is slightly lower than the 5.7-percent pay rise in 2020.
Aside from the Philippines, the report shows that 12 other markets in the Asia Pacific region have slowed down their 2021 average pay rise forecasts. These include Brunei, Cambodia, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, Singapore, South Korea, Sri Lanka, and Vietnam.
Countries with higher pay hike rate in 2021 include Bangladesh, Myanmar, and New Zealand, while nations such as Australia, China, Taiwan, and Thailand are expected to maintain their salary increase rate this year.
“After a difficult year for employers and employees — battling lockdowns, employee safety issues, working from home and declining revenues — many employers are finding ways to handle the crisis better, manage their businesses and help their employees with a more focused work and reward strategy,” WTW Philippines head of talent and rewards Patrick Marquina said.
The report said sectors have different pay hike rates depending on the impact of the pandemic to their industries, but the most optimistic ones are the sectors of pharmaceutical and health sciences, high-technology electronics manufacturing, and business support services include business process outsourcing.
Aside from pay rise, these sectors are expected to employ more this year as these industries prepare for growth and development opportunities this year.
“While there is certainly more optimism this year in both employers and employees alike, the recovery for many hard-impacted businesses would not be smooth sailing. Companies will continue to experience smaller salary budgets this year,” Marquina added.
Meanwhile, the report said 13 percent of surveyed Philippine employers are expected to freeze pay rise this year.
This is lower than the 28 percent of companies that did not implement salary increases last year.*PNA