Salary increase 2027
5.3%
Aon, from 5.0% in 2026
Inflation
7.2%
September 2026, from 6.1%
Top sector
6.7%
Consulting and business services
Attrition 2026
17.3%
second highest in the region
Increase and attrition from Aon's 2026 Salary Increase and Turnover Study; inflation from the Philippine Statistics Authority. Take-home figures on this page are PayMetric Labs' own modelled estimates.
Check your new salary after tax
BIR withholding, SSS, PhilHealth and Pag-IBIG on any monthly salary.
Why a 5.3% salary increase still loses to inflation
September's jump came mostly from food and fuel. Rice prices were up 20.3% on a year earlier and transport costs 14.6%, according to the Philippine Statistics Authority. Those weigh heaviest on households that spend most of their income on essentials, which is why the gap feels bigger than the headline.
Tax makes it slightly worse. The TRAIN Law brackets are fixed in pesos, so an increase is taxed at your top rate, and SSS, PhilHealth and Pag-IBIG rise with it up to their ceilings. Below about ₱20,833 a month, where no income tax applies, you keep most of an increase; above it, around 75 to 80 centavos of each extra peso. The saving grace is the 13th month pay, which rises with your basic and is usually tax-free.
| Monthly basic now | After 5.3% | Extra take-home a year | You keep | Increase to match 7.2% |
|---|---|---|---|---|
| ₱20,000 | ₱21,060 | +₱12,826 (5.4%) | 93% | 7.1% |
| ₱30,000 | ₱31,590 | +₱16,592 (4.8%) | 80% | 8.0% |
| ₱40,000 | ₱42,120 | +₱21,963 (4.8%) | 80% | 7.9% |
| ₱60,000 | ₱63,180 | +₱32,945 (5.0%) | 80% | 7.6% |
| ₱100,000 | ₱105,300 | +₱51,675 (4.9%) | 75% | 7.8% |
| ₱150,000 | ₱157,950 | +₱77,513 (5.0%) | 75% | 7.6% |
PayMetric Labs' own modelled estimate: 12 months of basic salary under the TRAIN Law graduated rates with employee SSS, PhilHealth and Pag-IBIG, plus a 13th month pay equal to one month's basic, tax-free up to ₱90,000. No allowances, de minimis benefits or other bonuses.
Salary increase 2027 across Southeast Asia
The Philippines sits in the middle of the region. Aon surveyed more than 1,200 businesses from July to September 2026, and budgets are steady everywhere: 5.2% on average for 2027, after 5.0% in 2026. Turnover is the pressure point. At 17.3%, Philippine attrition is second only to Malaysia's, and the consulting, business and community services sector, which leads on pay, also has the region's highest attrition.
| Country | 2025 | 2026 | 2027 budget | Attrition 2026 |
|---|---|---|---|---|
| Vietnam | 7.7% | 6.6% | 6.7% | 16.2% |
| Indonesia | 5.7% | 5.4% | 5.5% | 15.5% |
| Philippines | 5.3% | 5.0% | 5.3% | 17.3% |
| Malaysia | 4.8% | 4.6% | 4.8% | 17.4% |
| Thailand | 4.6% | 4.5% | 4.6% | 16.4% |
| Singapore | 4.3% | 4.1% | 4.1% | 16.8% |
Source: Aon, 2026 Salary Increase and Turnover Study for Southeast Asia, released 23 September 2026.
How to ask for more than 5.3%
- Lead with your market rate. Compare your pay with our Philippine salary pages or the Am I underpaid checker. For tech and shared-services roles, the IT-BPM and GCC salary guide shows the ranges.
- Use the skills demand. Aon's regional pulse survey found data and AI roles the most in demand (64% of employers), followed by front-office, cybersecurity and software and cloud roles. If your work is in those areas, say so.
- Point to retention risk, carefully. With attrition at 17.3%, replacing staff is expensive. A credible outside offer is the strongest evidence, but compare it after tax and benefits first.
- Count the whole package. Rice, uniform and other allowances within the de minimis limits are tax-free, as is the 13th month up to ₱90,000; a bigger allowance can be worth more than the same amount in basic pay.
Salary increase 2027 Philippines: frequently asked questions
What is the average salary increase in the Philippines for 2027?
About 5.3%. Aon's 2026 Salary Increase and Turnover Study, covering more than 1,200 businesses in six Southeast Asian countries, projects 5.3% for the Philippines in 2027, up from 5.0% actually given in 2026. The consulting, business and community services sector leads at 6.7%. It's a budget across all staff, so your own increase depends on your rating and role.
Is a 5% salary increase good in 2027?
It's about average, but it won't keep up with prices right now. Inflation jumped to 7.2% in September 2026, driven by rice and transport. After income tax and contributions, a 5.3% increase adds about 4.8% to 5.0% to take-home pay for most earners, so your pay buys less than a year ago unless inflation falls back.
What salary increase do I need to beat inflation?
On PayMetric Labs' own modelling, about 7.6% to 8.0% to lift take-home pay by 7.2%: 8.0% on a ₱30,000 monthly basic and 7.6% on ₱60,000. The year-to-date average inflation is lower at 5.4%, so the target depends on whether September's spike lasts.
Why is my increase smaller on my payslip?
Because tax and contributions come out of the extra pay. Income tax brackets under the TRAIN Law are fixed in pesos and don't rise with inflation, so each increase is taxed at your top rate: 15% to 30% for most employees. SSS, PhilHealth and Pag-IBIG also rise with your salary up to their ceilings. The 13th month pay that comes with the increase is usually tax-free, which softens it.
Does my 13th month pay go up with my salary increase?
Yes. 13th month pay is one-twelfth of the basic salary you earned in the year, so a 5.3% increase from January raises it by the same 5.3%. It stays tax-free as long as your 13th month pay and other bonuses total no more than ₱90,000 a year; above that, the excess is taxed. Our 13th month pay guide and calculator show the exact figure.
Do minimum wage earners get the same increase?
No. Minimum wages are set by the Regional Tripartite Wages and Productivity Boards through wage orders, separately from company increase budgets. Minimum wage earners are also exempt from income tax on their minimum wage, holiday, overtime, night differential and hazard pay, so their take-home rises almost in full with a wage order.
My increase takes me above ₱20,833 a month. Will I start paying tax?
Yes, on the part above it. The first ₱250,000 of taxable income a year is tax-free, which is about ₱20,833 a month after contributions, and the next band is taxed at 15%. A small increase across that line only taxes the pesos above it, so you never take home less than before.
Related: 13th month pay explained · 13th month calculator · SSS, PhilHealth and Pag-IBIG · TRAIN Law take-home
Sources and method
Salary increase budgets and attrition: Aon's 2026 Salary Increase and Turnover Study for Southeast Asia (23 September 2026). Inflation: Philippine Statistics Authority, released 6 October 2026, as reported.
Take-home figures are PayMetric Labs' own modelled estimates from our Philippine tax engine (TRAIN Law rates, SSS, PhilHealth and Pag-IBIG for 2026), described under the table. This is general information, not personal tax or financial advice.