Philippines' Salary Divide: Optimism vs. Reality in the Job Market

Wazzup Pilipinas!?

The Philippine workforce is at a crossroads. A recent foundit survey has uncovered a stark contrast in how professionals perceive their salaries—while nearly half of employees feel their compensation is above industry standards, a significant 42 percent believe they are underpaid. This divide underscores a pressing question: Are Filipino professionals truly earning what they deserve?

As the job market evolves and economic uncertainties persist, this survey sheds light on employee sentiments, wage stagnation, and the future of salary growth in the country. Employers, take note—your talent strategies may need a serious revamp.

The Salary Perception Gap: A Workforce Torn in Two

The Well-Compensated Minority vs. The Struggling Majority

According to the foundit survey:

47 percent of professionals believe they are paid above industry standards.

42 percent feel underpaid, highlighting dissatisfaction across multiple industries.

11 percent are unsure how their salary compares to industry benchmarks, showing a gap in transparency.

Interestingly, entry-level professionals (0-3 years) are the most optimistic, with 50.5 percent feeling well-compensated—a hopeful sign for fresh graduates. However, mid-level professionals (4-10 years) experience the highest dissatisfaction, signaling possible career growth stagnation.

Wage Stagnation: A Silent Crisis

For many Filipino professionals, salary growth has been painfully slow:

37 percent of employees have seen no significant change in salary over the past three years.

38 percent reported increases, but only 22 percent saw significant growth.

25 percent actually experienced a pay cut, with 11 percent reporting a substantial decline.

This lack of upward salary mobility raises concerns about whether companies are keeping up with market trends or if employees are being left behind.

The Battle for Salary Growth: Are Expectations Too High?

Despite widespread wage stagnation, optimism remains strong:

Nearly 80 percent of respondents expect salary growth in their industry.

29.7 percent expect a modest 6-10 percent increase in their next salary review.

26.9 percent have high expectations, anticipating a 30 percent or higher raise.

Yet, industries show mixed sentiments. Fast-moving consumer goods (FMCG), recruitment and staffing, and advertising and public relations professionals report the highest dissatisfaction with salary growth opportunities. Meanwhile, technology and IT employees are the most optimistic, expecting the biggest pay hikes.

Executive-level professionals (15 or more years of experience) are the most confident, with 51 percent expecting at least a 30 percent increase in their next salary appraisal. But are these expectations realistic?

What Drives Salary Trends in the Philippines?

In an unpredictable economy, professionals recognize the key factors shaping their earnings:

In-demand skills (38 percent) – High-paying industries reward skills that are scarce.

Economic trends (24 percent) – Inflation, global market shifts, and economic policies impact wages.

Industry-specific challenges (14 percent) – Some sectors struggle to maintain salary growth.

Technological advancements (13.6 percent) – Automation and AI are reshaping job roles and salaries.

For companies looking to attract and retain top talent, understanding these drivers is crucial to designing competitive compensation packages.

The Call to Action: What Employers Must Do Now

The data paints a clear picture: Filipino professionals want fair pay, career growth, and salary transparency. Companies that fail to adapt may find themselves losing top talent to competitors who understand these evolving demands.

What can employers do?

Implement transparent salary benchmarking – Employees should understand how their pay compares to industry standards.

Develop skills-based compensation structures – Reward employees for developing high-demand skills.

Offer clear career progression paths – Show employees that growth opportunities exist within the company.

Stay competitive with market trends – Regularly review and adjust salaries to stay in line with industry shifts.

Bridging the Divide for a Better Future

As foundit CEO V Suresh highlights, "This contrast presents both a challenge and an opportunity for employers navigating an increasingly competitive talent market. By bridging the perception gap and aligning compensation strategies with workforce expectations, companies can strengthen their employer brand and contribute to the Philippines’ continued economic growth.”

The future of salary growth in the Philippines depends on whether companies are willing to listen to their workforce. Will businesses step up and offer competitive wages? Or will employees be forced to seek greener pastures elsewhere?

The divide is clear. The solution is up to employers.

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