Philstar
Philippine firms expect 5.2% pay hike in 2026 as 1 in 5 workers plan to quit
Philippine companies are bracing for the highest employee turnover rate in Southeast Asia in 2026, with projections indicating one in five skilled workers may leave their jobs.
This projected turnover rate of 20% in the Philippines is higher than those anticipated for Singapore (19.3%) and Malaysia (18.2%).
However, Philippine firms are only projecting an average salary increase of 5.3% for 2026, a figure that lags behind countries like Vietnam (7.1%) and Indonesia (5.9%).
Experts suggest that Filipino professionals are seeking better compensation and accelerated career progression in a highly competitive job market.
In response, employers are increasingly viewing competitive salaries as a crucial investment to retain their most valuable employees, despite the modest projected pay hikes.
Rahul Chawla, Aon's partner and head of Talent Solutions for Southeast Asia, noted that organizations are prioritizing talent retention alongside technological and strategic investments.
Despite this high turnover trend, official government data indicates a continuous improvement in overall employment figures within the country.
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