- Filipino workers could see a slightly bigger salary increase next year as companies continue competing for skilled talent while figuring out how artificial intelligence will change their workforce needs.
- Philippine employers are budgeting an average 5.3% salary increase for 2027 , according to Aon's 2026 Salary Increase and Turnover Study for Southeast Asia. That is slightly above the 5% increase companies actually gave workers in 2026 and matches the increase recorded in 2025.
- The study covered more than 1,200 organizations across more than 20 industries in Southeast Asia.
Filipino workers could see a slightly bigger salary increase next year as companies continue competing for skilled talent while figuring out how artificial intelligence will change their workforce needs.
Philippine employers are budgeting an average 5.3% salary increase for 2027, according to Aon's 2026 Salary Increase and Turnover Study for Southeast Asia. That is slightly above the 5% increase companies actually gave workers in 2026 and matches the increase recorded in 2025.
The study covered more than 1,200 organizations across more than 20 industries in Southeast Asia.
Companies in consulting, business, and community services are planning the largest salary adjustments in the Philippines, with pay expected to increase by 6.7% in 2027, up from 4.8% this year.
Other sectors are also expecting salary increases:
- Life sciences and medical services: 5.8%, down from 6.2%
- Technology: 5.2%, up from 4.8%
- Manufacturing: 4.9%, down from 5%
- Financial services: 4.2%, up from 4%
The planned increases come as companies weigh how much to invest in people and how much to put toward technology that could automate parts of their operations.
Aon Head of Talent Solutions for Southeast Asia Rahul Chawla said companies are making these decisions while dealing with inflation, skills shortages, and other business risks.
Despite the planned pay increases, keeping employees remains a challenge. Employee turnover in the Philippines reached 17.3% in 2026, the second-highest rate among the Southeast Asian markets covered by Aon, behind Malaysia's 17.4%.
The hiring outlook is also mixed. About 38% of Philippine companies surveyed planned to expand their workforce, while 39% expected to reduce hiring.
This reflects an uncertain business environment, with 40% of companies reporting a positive outlook and 35% anticipating more difficult conditions.
The findings suggest that higher salaries alone may not be enough to retain workers as competition for skilled employees continues. Aon also pointed to career development, advancement opportunities, and a stronger sense of purpose as factors companies may need to consider.
As AI changes how different jobs are performed, companies are increasingly having to decide which skills and roles are worth investing in as they balance technology spending with their need to retain people.