MANILA — Philippine companies are being encouraged to move beyond across-the-board salary adjustments and adopt compensation systems that link pay increases to employee performance, career milestones and clearly defined contributions, as workers continue to face pressure from rising living costs.
Jobstreet by SEEK said employers need to provide performance-aligned compensation and clearer career pathways if they want to strengthen employee retention and workplace productivity. The recommendation comes as workers increasingly expect more transparent discussions about pay and stronger connections between compensation and career progression.
Data from Jobstreet by SEEK’s 2026 Salary Pulse report showed that 80% of Filipinos surveyed consider their salaries fair compared with industry standards. However, only 59% said they were satisfied with their current pay, highlighting the gap between what employees consider competitive compensation and what they feel is sufficient for their everyday financial needs.
The survey also found that 45% of respondents said their earnings remained below what they needed for daily sustenance. Persistent cost-of-living pressures are therefore becoming an increasingly important factor in how workers assess their compensation, even when their salaries are broadly aligned with industry benchmarks.
Jobstreet by SEEK Head of Country Marketing Henry Jose Yusingco said companies should normalize conversations about compensation rather than treating salary discussions as uncomfortable or exceptional events.
The report found that 60% of workers had requested a pay increase, while 85% of those who made a request successfully received one. The findings suggest that employees may be more willing to communicate their expectations when companies provide channels for transparent compensation discussions.
The relationship between compensation and employee engagement was also highlighted in the survey. Workers who received individualized salary increases reported higher happiness levels than those who received only general inflation-based adjustments, according to the report.
Employee dissatisfaction with pay can also affect retention. The report found that workers who were dissatisfied with their compensation were 2.9 times more likely to consider looking for another job. Meanwhile, satisfied employees were 2.2 times more likely to report going beyond the basic requirements of their roles.
These findings put pressure on employers to rethink how compensation is structured. Rather than relying exclusively on industry salary benchmarks or uniform annual adjustments, companies can establish measurable milestones that employees can work toward, such as expanded responsibilities, skills development, promotions, certifications or stronger performance results.
The approach could also give employees a clearer understanding of how they can increase their earnings over time. Transparent criteria may help reduce uncertainty around salary reviews and make career progression more closely connected to measurable achievements.
The report also pointed to differences across generations. Only 54% of Millennials surveyed said they were satisfied with their salaries, compared with 61% of Gen Z respondents. The disparity reflects the different financial pressures facing workers at various stages of their careers and lives.
For companies operating under tight compensation budgets, Jobstreet said rewards do not necessarily have to come entirely in the form of higher base salaries. Flexible work arrangements, professional development opportunities and performance bonuses can also form part of a broader employee-retention strategy.
Such benefits may become particularly important for businesses competing for skilled workers while trying to control labor costs. Clear development opportunities can also help employees see a longer-term path within the organization instead of viewing a job primarily through its current salary.
The issue is increasingly significant as Philippine businesses navigate changing workforce expectations, persistent living-cost pressures and competition for skilled talent. Compensation policies that fail to keep pace with employee expectations could create additional recruitment and retention challenges.
For employers, the challenge is therefore not simply deciding how much to pay workers, but establishing a system that employees understand as fair, transparent and connected to their contribution.
The bigger question now is whether Philippine companies will move toward more personalized, milestone-based compensation—or whether traditional across-the-board salary increases will remain the dominant approach as workers demand more from their employers.
