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EMPLOYERS in the Philippines expect to increase wages by an average of 5.6% this year, the slowest pace in more than a decade, as companies remain cautiously optimistic amid the coronavirus crisis, said in a report the global consulting firm Willis Towers Watson (WTW).
Citing its latest report from the Salary Budget Planning Survey released Monday, WTW said that 82.4% of the 233 companies surveyed in the Philippines will increase their employee salaries this year.
The 5.6% average salary increase projected for this year will be less than the actual rise of 5.7% in 2020 and the 6% increase in 2019.
For the past 10 years, the average salary increase was around 6%, but the pandemic forced companies to be more “modest in budget planning” this year, said Patrick V. Marquina, director of talent and rewards for the Philippines at WTW in an Email.
“While some companies may be improving, most companies remain cautiously optimistic, therefore they are more modest in planning their salary budget.”
In Asia-Pacito bec, companies in 13 of the 20 markets have lowered their average wage increase projections for 2021.
the to beThe findings were based on a survey of 233 to berms in the Philippines as part of a larger survey in 130 countries around the world to track the latest wage movements and review company practices. Responses were collected online from October to November 2020.
Fewer companies will implement a wage freeze this year according to WTW. Only 13% of companies surveyed said they will suspend any salary increase for the time being, up from 28% last year.
WTW said the survey results indicated the private sector’s “cautious optimism” for 2021.
“While there is certainly more optimism this year from both employers and employees, the recovery for many affected companies would not be easy. Companies will continue to experience smaller salary budgets this year, ”Mr. Marquina said in a press release.
The companies that raised their budget salary forecasts for the year are in the healthcare, technology, electronics and outsourcing sectors, which saw a surge in demand amid the global healthcare crisis.
WTW noted that companies in pharmaceutical and health sciences, high technology, electronics manufacturing and business support services, which include business process outsourcing, gave an increase of at least 5% in their salary budget projections for the anus.
Meanwhile, businesses related to consumer and retail products; energy and natural resources; and financial services were more “conservative in their salary budget plans” than the rest, according to Marquina.
“It is important for employers to differentiate their allocation of salary increases, so that they can provide significant salary increases for their best and most valuable talents, and prioritize spending on jobs that are likely to contribute the most to the success or survival of their businesses. ,” he said.
“After a difficult year for employers and employees, battling closures, employee safety issues, working from home and declining earnings, many employers are to befind ways to better handle the crisis, manage their businesses and help their employees with a more focused work and reward strategy, “he added.
Last year’s company closures and quarantine protocols forced companies in the worst-hit sectors to cut wages and lay offff employees. – Beatrice M. Laforga
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