PH salary hike slowing down, bonuses slightly up – survey

The increase in employee salaries in the private sector slowed down slightly to an average of 5 percent year-onyear, but bonus pay out improved at 1.6 months annually, a survey said.

In the recently completed Philippine Total Compensation Survey by leading global advisory, broking and solutions company Willis Towers Watson (NASDAQ: WLTW) said the 5 percent increase is a little lower compared to what companies have been budgeting for merit increase every year for their employees, which is at 6 percent.

This annual survey was conducted in July 2016 with approximately 400 responses received from companies across 12 industries in the Philippines. The full report will be unveiled on March 8 yet.

The 1 percent differential exists because companies were not able to spend as they are now more careful in allocating this budget, making sure that they use it to reward their high performing employees. The budget has been going down historically, and if that pattern continues in 2017, actual increases will be well below the 6 percent forecast by the companies surveyed.

The Total Compensation survey report covers three areas – compensation, policies and practices on salaries and human resources in general, and the benefits programs. Industries such as BPO, IT, financial services, pharmaceutical and health sciences, energy and natural resources, retail, construction and engineering, and consumer goods are covered. (BCM)