MANILA, Philippines — The average salary of Filipinos is expected to rise by an average of 5.5% in 2025, according to a consulting firm’s study on remuneration trends and policies.
If the average monthly wage of a Filipino is P18,423, as reported in the 2022 Occupational Wages Survey by the Philippine Statistics Authority (PSA), a 5.5% increase would translate to an additional P1,013.
In the latest study by Global consulting firm Mercer, Philippine companies were found setting aside 1% of their total payroll budget for promotions.
The study also revealed that these companies earmarked an additional 3% for “market adjustments,” which encompass changes in salary and benefits to address labor market conditions, inflation and other factors.
“The average salary increase of 5.5% in 2025 underscores the competitive landscape for talent and highlights the ongoing commitment by organizations in the Philippines to invest in their workforces,” Mercer Philippines business leader Floriza Molon said in a statement.
Why an increase? Mercer said that key factors driving this salary increase included Filipinos’ individual work performance, a company’s competitiveness in the job market, salary ranges and inflation.
Citing a “competitive talent market,” the study noted that most surveyed firms plan to adjust their compensation structures — which may include basic salary, allowances, bonuses and other incentives — for 2025.
What firms are doing. Mercer found that 9 in 10 surveyed organizations already offer “short-term incentive plans,” such as bonuses. Meanwhile, just over 1 in 5 Philippine firms provided “long-term incentives,” such as stock options, in 2024 — slightly up from 19% in 2023.
While modest, more companies were also observed offering “flexible benefits” this year compared to six years ago, with a 9-percentage-point increase from 10% in 2018.
“It is crucial for HR leaders to adopt a holistic approach to total compensation. This includes salary adjustments, short- and long-term incentives, as well as addressing the evolving well-being needs of employees,” Molon said.
Energy sector with the highest pay
Among the industries surveyed, jobs in the energy sector are the highest-paying in the country and have the lowest voluntary attrition rate (8%), meaning employees are less likely to leave.
The study found that the high-paying jobs in the energy sector offer about 45% higher annual base salaries compared to other industries.
Meanwhile, the shared services and outsourcing industry had the highest voluntary attrition rate at 17%, more than twice that of the energy sector, indicating a greater likelihood of employees leaving this industry.
Mercer said the high voluntary attrition rate may have been a result of a younger, more assertive workforce seeking career advancement opportunities.
Shorter tenures, averaging just three years, were also observed in the shared services and outsourcing industry.
This is in stark contrast to the consumer goods industry, where the average tenure is nine years. Mercer said this suggests a “higher turnover rate” and weaker job stability in the shared services and outsourcing industry.
The study’s findings stem from Mercer’s Total Remuneration Survey 2024, which analyzed remuneration trends and policies across 2,258 job positions from 482 companies in the Philippines, each with an average of 1,000 full-time employees.