Employees’ salaries projected to increase in 2023
This was according to a report by Willis Tower Watson (WTW), which showed that private companies are allocating an average median increase of 5.7% in salaries for 2023, slightly higher than the usual 5.5% annual increase.
Particularly in the Philippines, 52.5% of the 385 employees polled have increased their salary budgets this year, making the Philippines fifth out of 14 countries to have the largest increase in salary budget raises for 2023. The Philippines is also fifth globally for actual pay raise this year.
“When asked whether they have changed their 2022 salary increases from their original projections, only 32.5% have made further adjustments from what they have initially planned for, while 51% have maintained the pay budgets they set at the start of 2022,” WTW said.
India topped the ranking, with a projected increase in salary raise budget at 10%, followed by Vietnam at 8%, Indonesia at 7%, and China at 6%.
The most cited factors for a higher pay raise budget are the labour market (59%); cost management such as inflation and the rising cost of goods in the market (58%); and employee expectations for higher salary increases due to inflation (44%).
The study also revealed that due to inflation concerns, 65% of respondent companies said that they would not have more frequent salary increases, while others said they already have or are planning to increase the frequency of their salary raises, with 98% of them saying that they have already adjusted, or will adjust, salary raises twice a year.