The Philippines Senate has proposed a significant salary increase for civilian Government employees. This is part of the Salary Standardization Law of 2019, which includes a four-part salary increase plan. The first phase of this increase started on 1 January 2024. Senator Christopher Lawrence, who introduced the bill, believes that regularly updating salaries is important to keep Government jobs attractive and reduce the risk of corruption.
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Worker Salary Increase in Philippines
The Department of Budget and Management has set 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 different Government agencies, promoting fairness, efficiency, and high standards in civil service.
Who is Not Included?
- Military personnel
- Uniformed personnel
- Workers in Government-owned or controlled corporations
Impact on Industries
Industries like shared services, consumer goods, outsourcing, and retail are expected to grow, which will increase the need for skilled workers. In 2024, there will be no additional salary increase since the first phase was already implemented on 1 January. The second phase will take place next year.
Economic Impact
The Government is prepared for the economic effects of these salary increases. Budget Secretary Amenah F. Pangandaman announced that around ₱17 billion is set aside for these salary changes in the upcoming year. This funding shows the Government’s commitment to offering competitive pay, which helps attract skilled individuals to Government jobs and improves work quality.
Possible Salary Increase for Private Sector Workers
A recent survey by Mercer, a global service company, predicts a median salary increase of 6.2% in 2024 for private sector workers. This is a slight increase from last year’s 6%. Factors contributing to this rise include:
- Higher demand for skilled employees
- Increased competition for top talent
- Ongoing inflation
Mercer’s study highlights that the Philippines is expected to grow economically despite global challenges.
Government Approval
According to the latest report from the Presidential Communications Office, Ferdinand Marcos Jr. has approved the order for the Government worker salary rise and supplementary allowance on 2 August 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 in the Philippines has remained steady at ₱610 per day for both 2023 and 2024. It’s worth noting that the minimum wage can differ from province to province. As of 2024, the Metro Manila or National Capital Region maintains the highest minimum wage at ₱505.23 per day. However, it’s essential to recognize that the average salary of Filipino workers can vary greatly depending on the specific industry, job position, and geographical location.
Minimum Wage Examples
- Metro Manila (2023)
- Non-agricultural workers: ₱537 per day
- Agricultural workers: ₱500 to ₱537 per day
Sector-Specific Salary Increases
As proposed under the plan approved in 2019, the rise in salary will be carried out over four years. Among various sectors, the energy sector is predicted to see the highest salary rise at 7%, followed by:
- High-tech industry: 6.8%
- Retail and wholesale: 6.7%
- Consumer goods: 6.5%
This reflects the country’s efforts to recognize and reward its workforce.
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