The Manila Times

SALARY BUDGETS SEEN INCREASING IN 2023 – STUDY

TIZIANA CELINE PIATOS

SALARY budgets for employees are projected to increase by 5.7 percent in the Philippines in 2023, a study revealed on Monday.

According to global advisory and solutions company WTW’s Salary Budget Planning Report, companies in the Philippines budgeted a 5.5-percent increase in pay for 2022.

The researchers attributed the slight increase to the continuing tight labor market and rising inflation concerns in Asia-Pacific (APAC).

The survey results showed that 52.5 percent of employers in the Philippines have budgeted for higher salary increases in 2022 compared to last year.

When asked whether they have changed their 2022 salary increases from their original projections, only 32.5 percent have made further adjustment from what they have initially planned for.

Meanwhile, 51 percent have maintained the pay budgets they set at the start of 2022.

Despite concerns on inflation and rising costs, 65 percent of companies are not looking into making more frequent salary increase adjustments with only 35 percent having already increased or planning to increase how often they raise salaries.

Among those respondents, the vast majority (98 percent) have or will adjust salaries twice per year.

“Compounding economic conditions and new ways of working are leading organizations to continually reassess their salary budgets to remain competitive,” said Patrick Marquina, work and rewards leader, Philippines, WTW.

“Although higher salary increases are expected, various industries are showing different developing rhythms. With such a dynamic environment, it’s imperative for organizations not only to have a clear compensation strategy but also a keen understanding and appreciation of the factors that influence compensation growth,” added Marquina.

The Philippines was fourth overall among 14 APAC countries for salary increases in 2022 and 2023.

The highest budgeted salary increase was logged in India, at 9.5 percent and 10 percent projected for 2022 and 2023, respectively. In second place was Vietnam -- 7 percent this year and 8 percent for 2023.

The countries with the lowest salary increases were Japan with 2.5 percent in 2022 and 2.6 percent projected for 2023. Australia and New Zealand followed with 3 percent for both 2022 and 2023 (projected).

Business Times

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2022-09-27T07:00:00.0000000Z

2022-09-27T07:00:00.0000000Z

https://digitaledition.manilatimes.net/article/281865827343448

The Manila Times