Salary increase in Philippines seen to outpace inflation in 2020
MANILA, Philippines – Filipinos' salary increase is seen to be higher than the increase in prices of goods in 2020, according to a survey by professional technology services firm Mercer.
The survey found that salaries for next year are forecast to grow by 6% from the previous projection of 5.5% in 2019. Inflation is seen to remain benign at 3.3% in 2020. (READ: Inflation further slows to 0.8% in October 2019)
Consumer goods, energy, and high technology industries are predicted to have the highest salary increases at 6% next year.
A higher increase in income than inflation means more purchasing power for employees.
The results were based on key salary trends from 433 companies in the Philippines across various industries.
Meanwhile, Mercer found that Philippine companies are expected to hire fewer new workers next year, with just 45% of them planning to add workers compared to 50% in 2019.
"Given the stabilizing voluntary turnover rate, the focus of most organizations is turning to upskilling and retaining key talent. However, 66% of companies in the Philippines don't have a formal retention policy in place," the report said.
Workplaces were also found to be increasingly multigenerational, as members of Generation Z take on their first jobs and join millennials, Generation X, and baby boomers at work.
"These emerging realities challenge companies to have more compelling and differentiated value propositions, increase pay transparency, and rethink pay for performance, so they can attract, retain, and manage talent," said Floriza Molon, career business leader of Mercer Philippines. – Rappler.com