A leading Global Professional services firm has issued the results from the 2024 salary growth and turnover study for Southeast Asia. The study was led from July to September 2024, and the professionals analyzed the salary adjustment and turnover ratio of more than 950 corporations across Vietnam, the Philippines, Thailand, etc.
Based on that study, the Department of Budget and Management has assigned P70 billion in the 2025 national budget for a two-tranche salary rise for government workers and Aon Survey projects a 5.8% salary rise for the Philippines in 2025 for private sector workers. Read the complete article to know more details about the Philippines Worker Salary Increase 2025.
Philippines Worker Salary Increase 2025
For financial determinations, we allocated P70 billion to the Miscellaneous Personnel Benefits Fund (MPBF) for FY (Fiscal Year) 2025 to meet the funding needs for Tranches 1 and 2. Since each agency’s Personnel Services budget under the National Expenditure Program (NEP) is still based on 2023 rates, this is the situation, Budget Secretary Amenah Pang Andaman told GMA News Online.
According to Pang Andaman, the P70 billion set aside for compensation increases for bureaucratic employees will be divided between P35 billion for Tranche 1 and another P35 billion for Tranche 2. This year’s first pay adjustment will be backdated, covering January through December 2024, the budget head stated at a Palace briefing on Thursday.
In the Philippines, the Salary Standardization Law is a key factor in determining compensation rises for workers. With an importance on resolving inflationary pressures, labour market competitiveness, and economic development, the law needs yearly advantage increases. A four-tranche payment rise scheduled from 2024 to 2027 will be implemented in 2024 by the Department of Budget and Management (DBM) to gradually raise wages over the ensuing years.
These changes aim to increase employee competence and responsibility in addition to monetary compensation. The approach rationalizes the process and reduces the need for one-on-one reward discussions by finding clear timelines for salary rises. In this post, I have mentioned the Public Servant and Private Worker Wage Hike in 2025, the Philippines Daily Minimum Wage, etc. Read it carefully.
Philippines Worker Salary Increase 2025 – Overview
| Article Title | Philippines Worker Salary Increase 2025 |
| Department | Department of budget and management |
| Country | Philippines |
| Expected increase | Mentioned below |
| Beneficiaries’ | Public Servant and Private Worker |
| Year | 2025 |
| Category | Finance News |
| Official Website | dbm.gov.ph |
Public Servant and Private Worker Wage Hike in 2025
- Public Sector Workers: The Department of Budget and Management assigned P70 billion in the 2025 national budget for a two-tranche salary rise for government workers. The miscellaneous personal benefit fund (MPBF) and programmed appropriations determine the first tranche. The average rise for salary grades 1 to 31 is 4.41. the increase for other salary grades is:
SG11 to SG 24: 4.50% to 5.60%
SGs 25 to 28: 4.15% to 4.40%
SGs 29 to 31: 2.65% to 3.90%
SGs 31 to 33: 2.35% to 2.40%
- Private Sector Workers: Aon Survey projects a 5.8% salary rise for the Philippines in 2025. The minimum budget salary increase is 5.8%.
- Minimum Wage: CALABARZON and C. Visayas regions raised in September 2024 and the minimum wages are:
Class A: PHP501 Per day
Class B: PHP463 Per day
Class C: PHP453 Per day
Philippines Daily Minimum Wage
The Philippines’ minimum wage, which is 610 PHP per day as of 2024, has not increased from 2023. It’s crucial to remember, though, that minimum wages differ by region. The minimum wages in various regions are broken out as follows:
- Metro Manila: the highest real minimum wage is 505.23 PHP per day.
- Region IV-A: Next in line, with a minimum wage of 420.71 per day.
Wage Order No. IVA-19, which has been in effect since June 2022, has raised the minimum wage for all employees in businesses in Calabarzon (Region IV-A). This raise provides equitable remuneration throughout the region and applies to typical workdays that don’t exceed eight hours.
The minimum wage has historically increased dramatically, rising from 89 PHP per day in 1989 to 610 PHP per day in 2023. The average daily wage throughout the past thirty years has been approximately 354.32 PHP.
| Official Website | Click Here |
| Homepage | Philtranco.net |
Philippines Worker Salary Increase 2025 FAQs
When will the worker salary increases take effect in 2025?
Workers can anticipate it from January 1, 2025. It is not confirmed by the Authority of Budget and Management.
How much salary increase for private sector workers in 2025?
Aon Survey projects a 5.8% salary rise for the Philippines in 2025. The minimum budget salary increase is 5.8%.
Which department will take care of the Salary increment when it is needed?
The Authority of Budget and Management will take care of the salary increment for the private and public sectors.