Here's a bit of good news for the pandemic-weary Filipino worker.
Willis Towers Watson (WTW) is projecting an average pay rise of 5.6 percent among Philippine employees this year, based on the global advisory, broking, and solutions company's latest Salary Budget Planning Survey report.
The figure is a very minute improvement--but an improvement nonetheless--from the average pay increase of 5.5 percent recorded in 2020, the year that the coronavirus disease (COVID-19) pandemic struck.
The 2020 average salary increase was the lowest in the Philippines in more than a decade, WTW said. The actual salary increase in 2019 was 6.0 percent.
“After a difficult year for employers and employees – battling lockdowns, employee safety issues, working from home, and declining revenues – many employers are finding ways to handle the crisis better, manage their businesses and help their employees with a more focused work and reward strategy,” said Patrick Marquina, Head of Talent and Rewards, WTW Philippines.
In a statement on the report Monday, March 8, WTW said the number of companies that are likely to freeze pay is expected to decrease sharply this year, "in a further sign of cautious optimism for 2021".
"Last year saw over a quarter (28 percent) of private sector companies in the Philippines freeze pay increases as they were curtailing costs. This is expected to fall to 13 percent of companies this year with 82.4% of companies expecting to conduct a salary review (vs 61 percent in 2020)," it said.
WTW noted that different industries have experienced differing fortunes during the pandemic, and this is reflected in anticipated pay rises for 2021. The most optimistic industries are pharmaceutical and health sciences, high tech, electronics manufacturing and business support services, including business process outsourcing (BPO) with a 2021 salary budget increase forecast of 5 percent or more.
The solutions company reckoned that these industries will continue to have a rise in demand for talent as employers in these sectors prepare for growth and development opportunities in 2021.
“While there is certainly more optimism this year in both employers and employees alike, the recovery for many hard-impacted businesses would not be smooth sailing. Companies will continue to experience smaller salary budgets this year.
"Therefore, it is important for employers to differentiate their allocation of pay rises, so that they can provide meaningful salary increases for their best and most valuable talent, and prioritize spending on jobs that are likely to contribute the most to the success or survival of their businesses," Marquina said.
A total of 233 Philippine companies across different industries participated in the worldwide survey, which was conducted online in October/November 2020.