Get all the latest updates on the Worker Salary Increase in Philippines: New Changes and Possible Increase Here. As 2024 begins, major changes are coming to salaries in the Philippines. Both Public sector and private sector employees are set to see pay increases. If you are a working professional, then this article will certainly be beneficial for you.
Worker Salary Increase in Philippines
The Philippines Senate has proposed a significant salary increase for civilian Government employees. This plan is part of the Salary Standardization Law of 2019 and includes four part salary rise. The initial phase of this increase began on 1 January 2024. Senator Christopher Lawrence, who introduced the bill, believes regular salary updates are crucial. They help keep Government jobs attractive and reduce corruption risks.
It is important to note that the plan does not include military personnel, uniformed personnel, or workers in Government-owned or controlled corporations. Industries like shared services, consumer goods and outsourcing, and retail are set to expand, increasing the need for skilled workers. In 2024, there would not be any salary increase as the first tranche was already implemented on 1 January. For the second tranche, individuals have to wait for the coming year.
Worker Salary New Changes
The Department of Budget and Management is setting up a new four-part pay raise schedule that starts on 1 January 2024 and continues yearly until 2027. This plan aims to make salaries more consistent across diverse Government agencies, encouraging fairness, efficiency and high standards in civil service.
The Government is all set for the economic effects of these salary increases. Budget Secretary Amenah F. Pangandaman publicized that around ₱17 billion is set aside for these salary changes in the forthcoming year. This funding shows the Government’s commitment to competitive pay, helping attract skilled individuals to Government jobs, and improving work quality.
Worker Salary Possible Increase
For private sector workers, a recent survey by Mercer, a global service company, predicts a median salary increase of 6.2% in 2024. This is a slight increase from last year’s 6%. Several factors contribute to this rise, including higher demand for skilled employees, increased competition for top talent and ongoing inflation. Mercer’s study highlights that the Philippines is expected to see economic growth despite global challenges.
As per the late report from the Presidential Communications Office, Ferdinand Marcos Jr. has approved the order for the Government worker salary rise and supplementary allowance on 2 November 2024. The salary increase schedule will be available to all civilised Government personnel in the legislative, executive and Judicial Branches, the Constitutional office, as well as communications.
Minimum Wage in the Philippines
The minimum wage remains unchanged in the Philippines for the years 2023 and 2024 at ₱610 per day. Apart from this, it is important to note that the minimum wage in the Philippines varies according to the province. As of 2024, the Metro Manila or National Capital Region has the highest minimum wage of ₱505.23 per day. However, the average salary of Filipino workers varies depending on the industry, job position and location.
For instance, in Metro Manila, the minimum wage is around ₱537 per day for non-agricultural workers and ₱500 to ₱537 per day for agricultural workers as of 2023. Keep in mind that these figures represent the minimum wage and not the average salary. The average income of Filipino employees could be much higher, especially in skilled professionals or industries with maximum pay scales.
All We Know
As proposed under the plan approved in 2019, the rise in the salary will be carried out over four years. Among various sectors, the energy sector is predicted to see the highest salary rise at 7 per cent. This is followed by the high-tech industry at 6.8%, retail and wholesale at 6.7% and consumer goods at 6.5%. This reflects the country’s efforts to recognize and reward its workforce.
The average worker in the Philippines earns nearly ₱50,600 monthly, whereas the highest monthly income is ₱224,000, and the lowest is ₱6,840. We want to inform you that the first tranche of the increase has already been made on 1 January 2024. But the second phase of the salary increase will begin on 1 January 2025, followed by the third in 2026.
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