Firms cut salary budget; digital talent in demand

Despite the country’s strong economic performance, 34.6 percent of organizations in the Philippines have lower salary budgets for this year compared to last year, according to a report from global advisory and solutions company WTW.

- LOUELLA DESIDERIO

The firm’s Salary Budget Planning Report showed the overall median pay increase for 2024 in the country is at 5.6 percent, slightly lower than the previous year’s 5.7 percent.

Conducted from April to June this year, the survey had 440 participating companies from the Philippines.

WTW said organizations in the Philippines attributed the lower salary budgets for this year to inflationary pressures, concerns related to cost management and tighter labor market, as well as weaker financial results.

For next year, salary budget increases are expected to be flat at 5.6 percent.

The report found strong demand for digital talent, with salaries for technology-related roles increasing by 10.28 percent last year from 2022.

Management roles with the highest salaries are those in the functional or business area, information system and cyber security development and information technology architecture.