This is my 3rd year in my current company and in my last 2 years I got annual salary increase even if it's not included in my contract or we don't even talked about this during my application. So now I am expecting that they will give another salary increase for this year. I work in IT in the Philippines.

My question is, is it necessary to employer to give annual salary increase to the employee, or it's depends on the contract?

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is it necessary to employer to give annual salary increase to the employee, or it's depends on the contract?

Unless it's required by your contract, union rules, or local law, it is never required that an employer give annual salary increases. I haven't found anything that indicates there are laws requiring annual raises in the Philippines.

That said, the fact that you got increases the past two years means that you are likely to get one this year.


is it necessary to employer to give annual salary increase to the employee? or it's depends to the contract?

Nothing is necessary, everything is a choice.

To elaborate, organizations and employees are bound by the contract the sign to follow. I'd be a bit surprised if a full-time employee contract does not include a clause for performance and remuneration review on a given cycle (yearly). However, I'd not be surprised if the result of the review does not end up in increase in salary. There are multitude of factors which depends on the paycheck revision - and just "being on payroll" is not one of them.

In other words, there's no "guarantee" that you will have an increased payout after every review cycle, however, it's usually likely that you'll get some amount of hike. However, as you mentioned (are you sure?), there is no clause in the contract about the revision of salary, so company is not "bound to" give you a hike.

  • Why this answer is "not useful"? – Sourav Ghosh Mar 6 at 6:17
  • 2
    "Nothing is necessary, everything is a choice.", provided you're an expert in Philippines employment laws. In several Asian countries, most companies are obligated by law to give small raises to account for increased living cost. I'm not sure if this applies to the Philippines but it's is something to consider when drawing from western employment law experience, – Xander Mar 6 at 9:13

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