Salaries in Philippines to rise by 5.5% in 2025, study reveals

Average salaries in the Philippines are set to rise by 5.5% in 2025, slightly higher than the 5.2% increase in 2024, according to a recent study by global consultancy Mercer. This growth reflects a competitive talent market, with organisations continuing to invest in their workforces to retain top talent.

As salary growth and compensation strategies evolve, the workforce in the Philippines can expect better pay opportunities and more incentives across various sectors.

A recent study by global consultancy Mercer reveals that average salaries in the Philippines are set to rise by 5.5% in 2025, up from 5.2% in 2024. The survey also found that 97% of companies plan to revise compensation strategies, increasing short-term incentives and long-term benefits like stock options.

Mercer’s 2024 Total Remuneration survey reveals that companies are allocating 1% of payroll budgets for promotions and 3% for market adjustments. Factors such as inflation and labour market competitiveness are expected to influence these adjustments in the coming year. Notably, 97% of companies plan to revise their compensation strategies in 2025, with many implementing short-term incentive plans like bonuses and increasing the use of long-term incentives, such as stock options.

Floriza I. Molon, Business Leader at Mercer Philippines, emphasised the importance of adopting a holistic approach to total compensation, which includes salary adjustments, incentives, and addressing employees’ evolving well-being needs. This approach helps organisations attract and retain talent in an increasingly competitive landscape.

The study also highlighted industry trends, with the Energy sector leading in salaries, offering base pay 45% higher than other industries. However, high attrition rates were seen in the Shared Services and Outsourcing (SSO) industry, driven by younger workers seeking career advancement.

Source: GWFM Research & Study