Big Pay Raise Coming in 2025: A big pay raise is coming in 2025 for many workers in the Philippines! Based on current forecasts from public and private sector sources, salaries across industries are expected to rise significantly. From government employees benefiting from the Salary Standardization Law (SSL) to private-sector professionals in energy, tech, and retail, the increase will likely affect millions.
In this article, we’ll break down what you need to know about the projected 2025 salary increases in the Philippines, why they’re happening, how much workers can expect to gain, and what steps you can take to prepare and make the most of these changes.
Big Pay Raise Coming in 2025
| Topic | Details |
|---|---|
| Average Salary Increase (Private Sector) | 6.2% in 2025 (up from 6.0% in 2024) |
| Salary Increase for Government Workers | 4% to 8% depending on Salary Grade under SSL VI Tranche 2 |
| Top Growing Industries | Energy (7%), IT/High-Tech (6.8%), Retail (6.5%) |
| Regional Adjustments | Wage hike expected in NCR and other regions (DOLE review in progress) |
| Legislative Proposals | Pending House Bill for ₱200 daily wage hike for private sector workers |
| Official Resources | DOLE, PNA |
With the expected salary increases for Philippine workers in 2025, employees across sectors stand to benefit from a more rewarding job market. From public servants to retail associates and IT professionals, the coming year promises meaningful income growth, especially when paired with skills development and proactive negotiation.
Stay updated, know your worth, and plan ahead to make the most of your compensation in 2025. For official updates, visit DOLE, DBM, and PNA.
Why Are Philippine Salaries Increasing in 2025?
There are several reasons why a salary increase in 2025 is becoming a reality for many Filipino workers:
1. Economic Recovery and Growth
The Philippine economy is bouncing back steadily from pandemic-related downturns. As the country stabilizes, businesses are more confident in investing in talent. According to the Philippine Statistics Authority (PSA), GDP growth is expected to remain strong in 2025, boosting employer payroll budgets.
2. Talent Competition
Companies are now fighting for top talent. With many professionals seeking better work environments and opportunities abroad, local firms must raise pay to keep skilled workers.
3. Cost of Living and Inflation
Prices have gone up across the board, from groceries to transport. Employers recognize that to retain talent, wages need to keep up with the cost of living.
4. Government Mandates and Policies
With the second tranche of SSL VI kicking in on January 1, 2025, and pending legislation proposing a daily wage increase, policy changes are pushing employers to raise salaries across sectors.
Public Sector Increases: Salary Standardization Law VI (SSL VI)
Government workers can expect pay increases between 4% and 8% in 2025. This is part of the ongoing implementation of the Salary Standardization Law VI, which began in 2020 and continues through 2027.
SSL VI Tranche 2 Sample Increases:
| Salary Grade | Current Pay (2024) | New Pay (2025) |
|---|---|---|
| SG 1 | ₱13,000 | ₱13,780 |
| SG 10 | ₱21,205 | ₱22,520 |
| SG 24 | ₱85,744 | ₱88,912 |
| SG 30 | ₱184,190 | ₱192,480 |
Private Sector Salary Projections: What Companies Plan to Offer
A 2024 report from Mercer reveals that employers in the private sector plan to offer a 6.2% median salary increase in 2025. This is slightly higher than 2024’s 6%.
Highest Expected Pay Raises by Sector:
- Energy Sector: 7.0%
- IT and High-Tech: 6.8%
- Retail & Consumer Goods: 6.5%
- Banking & Financial Services: 6.2%
- Logistics & Manufacturing: 5.8%
These increases aim to address market competitiveness, performance rewards, and inflation-based adjustments.
Why Employers Are Raising Salaries
- Attract and retain talent in a competitive labor market
- Respond to inflationary pressure on employee households
- Align with global compensation trends, especially in regional hubs like Singapore and Malaysia
Legislative Developments: Daily Wage Increase Proposal
A proposal in Congress aims to legislate a ₱200 daily wage increase for private sector workers nationwide. If passed, this would significantly raise monthly earnings for minimum-wage earners.
Status:
As of April 2025, the bill has passed the House Committee on Labor and Employment and is awaiting Senate deliberation. Read more on the Philippine News Agency. If implemented, this could be the largest legislated pay hike in recent Philippine history.
Regional Wage Adjustments Under Review
The Department of Labor and Employment (DOLE) has initiated a wage review for Metro Manila and other regions. These reviews consider:
- Inflation trends
- Basic family needs
- Industry growth
For Metro Manila, the minimum wage could increase beyond the current ₱573 daily rate. Updates will be published at dole.gov.ph.
Big Changes Ahead: What the 2025 SSS Pension Overhaul Means for Your Monthly Income
Filipino Families Can Now Claim ₱20,000–₱60,000 in Government Aid – Here’s How to Qualify
What Can Workers Do to Prepare?
Here are a few smart steps you can take to make the most of the 2025 salary hike:
1. Research Your Market Rate
Use tools like JobStreet, LinkedIn Salary Insights, or the Philippine Statistics Authority to understand salary trends in your field.
2. Upskill and Reskill
Enroll in training programs through TESDA, DICT, or Coursera to make yourself more marketable and justify a higher salary.
3. Negotiate Smartly
Don’t be afraid to ask for more. Use data to back up your request during performance reviews or job changes.
4. Monitor Legislative Changes
Keep an eye on wage-related bills and minimum wage orders, especially in your region.
FAQs On Big Pay Raise Coming in 2025
Q: Will all workers get a pay raise in 2025?
A: Not automatically. Increases vary depending on your industry, location, and whether you’re in the public or private sector. However, most workers are expected to benefit.
Q: Are these increases enough to cover inflation?
A: While they help, some increases may still lag behind real inflation, especially in urban areas. It’s best to combine salary growth with budgeting and upskilling.
Q: When will the SSL VI salary increases take effect?
A: The second tranche of SSL VI will take effect on January 1, 2025.
Q: Is the ₱200 daily wage increase already a law?
A: Not yet. As of April 2025, it’s under Senate review.
Q: How often are wage boards required to review minimum wages?
A: By law, Regional Tripartite Wages and Productivity Boards must review minimum wages once a year or as necessary.
