It can seem difficult to judge what a “good” salary is in the Philippines. After becoming intrigued with the query, I started to develop some research. The findings were surprising, and I’m excited to show you the data I collected. But firstly, what is a good salary in the Philippines? 

An individual working in the Philippines on average earns 44,600 PHP ($931.06) each month, which is considered a good salary. This average was calculated from their lowest average salary, 11,300 PHP ($235.90), and their highest average salary 199,000 PHP ($4154.29).

As you’re able to grasp from the above, the lowest, median, and highest average salaries widely vary. To find out more about the overall distribution of these wages, I recommend you read the below. 

Distribution of Salaries in the Philippines 

The distribution of wages is vital for all countries as it determines their poverty levels. If wealth is too unevenly distributed, it can negatively affect both the rich and the poor. This is because of the influence of money, and the more people get paid, the harder they work. Therefore, having an uneven split of rich and poor can be destructive to the economy. 

Lowest salary in the Philippines

shoes factory in the Philippines

On average, around 25% of employees who work in the Philippines earn less than 26,800 PHP ($559.77) per month. Typically, you’ll find these workers in industries such as forestry, farming, freight, and tailoring. 

From the above, you’re able to understand that the mentioned industries underpay their employees. Because we know the highest average salary is 199,000 PHP ($4154.29) per month, we can now say that 75% of employees in the Philippines earn between 26,800 PHP ($559.77) to 199,000 ($4154.29) each month.

Compared to the USA, workers in the lowest pay bracket in the Philippines earn $1,440.30 less each month in comparison to the USA’s lowest average salary. 

Median salary in the Philippines

This graph shows that the distribution of salaries that earn the median pay is a maximum of 50%. Within these findings, the data shows that 50% of all employees working in the Philippines make 48,200 PHP ($931.06) each month or less. This means that not precisely 50% of the workforce in this country earns this median, but actually between 0-50%. 

If we take a look at the average American’s wage from 2017, which was $60,558. We can understand that Filipinos earn $49,289.28 less per year. This can seem rather jaw-dropping. However, it’s estimated that living in the Philippines is 50-60% cheaper than in the USA, UK, or Australia. So, although it may seem like the Filipino people get paid a significant amount less, it almost balances itself out because of the cost of living.  

Highest salary in the Philippines

Now, moving onto the top 50%, which are considered the “higher” salaries in the Philippines. These people earn more than 48,200 PHP ($931.06) and the highest average of 199,000 PHP ($4154.29). From this data, we’re able to discover that the top 25% of Philippine workers earn an average of 123,600 PHP ($2579.51) per month by finding the median of both the highest and average salaries. 

Let’s say you double it to make it into a household income. This will be around 1.4 million PHP ($30,950.00) each year in the highest pay bracket. However, in the US, only 25.4% of households earn below $34,900 each year.  

Difference Between Men and Women salary in the Philippines

Another interesting statistic is the pay difference between men and women in the Philippines. The pay gap between men and women is a global issue that has been around since the beginning of time. However, how does the Philippines compare to the US in gender pay equality?

In the Philippines, on average, men get paid more than 15% across all industries. If we consider their average salaries each month, women will get paid 41,500 PHP ($866.10) and men 47,700 PHP ($991.32).

If we compare this to the US, there’s almost a 3 percent less pay difference in the Philippines. In the United States, it’s estimated that a woman earns 82.3 cents for every dollar a man accumulates. Meaning women get paid a whopping 17.7% less than men in the US

Average Annual Salary Increase in the Philippines 

Something else I found interesting during my research was the average annual salary increase that workers in the Philippines receive. Typically, this is measured annually or over 16 months. 

Philippines Average increase 

In the Philippines, you’ll be surprised to hear that they receive a higher annual increase than the rest of the world. If you’re working in this country, you can be expected to receive around an 8% pay increase every 16 months of employment. 

This widely depends on the industry you work in. For a better understanding, see the below chart of the average increases that salaries encounter annually depending on your industry. 

IndustryIncrease Percentage
Energy9%
Banking9%
Information Technology9%
Travel9%
Construction9%

Source – Salary Explorer

For further clarity, you can also see the below data that is based on the average salary increase based on experience level: 

Experience LevelIncrease Percentage
Junior Level3% – 5%
Mid-Career6% – 9%
Senior Level10% – 15%
Top Management15% – 20%

Source – Salary Explorer

As you’re able to see from the above, the more experienced you are in a specific industry, the increased chances of a higher pay increase every 16 months. 

Worldwide Average Increase 

The above-average increases from the Philippines seem rather impressive, to say the least. But how does this compare to the rest of the world? Well, on average, the rest of the world gains around a 3% increase on their annual pay every 16 months. This means that people working in the Philippines tend to get a more significant pay increase on their salaries each year.

However, you have to take into consideration a variety of different factors. For example, people working in the Philippines get paid less. Therefore, there is more room for pay increases than in other places around the world. 

If the average American who earns $60,558 a year gained an 8% increase annually, they’d be making an astonishing amount of money. Because the pay brackets are much lower in the Philippines, they can achieve much higher annual salary increases. 

Conclusion 

As you can see from the above, over 50% of people living in the Philippines generate a “good” salary compared to the other employees working there. Throughout this post, we’ve spoken about the distribution of wages, and the average salary increases workers receive in this country on an annual basis. 

I found the salary increase statistic rather interesting, but this is understandable due to their pay brackets. If you were to receive this type of increase anywhere else from an annual perspective, in 20-30 years, you’d be making an incredible amount of money.  

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