HOW much should a Gen Z worker get paid?

A recent survey found that Filipino Gen Zs are expecting a salary of about P31,000 per month, eliciting debate among Filipinos from different generations.

In its Talent Survey 2023, employer branding firm Universum reported that Gen Zs are aiming for an initial annual salary of P374,403 after finishing school. The firm said that it is lower compared to the P495,966 annual salary, or about P41,000 monthly, expectation last year.

More than 5,000 students from 103 universities in the country participated in the latest survey conducted from November 2022 to March 2023.

The results have led to intense discussions, with some individuals saying that this salary expectation is too much for a young worker. But others believe that the future talent pool deserves to demand it in these times.

Although not part of the survey, students Kristel Baculi, 22, and Lucky Bermudez, 22, are among the Gen Zs who are expecting a salary of more than P30,000 a month once they enter the workforce.

Expectations

Baculi is currently studying for a Doctor of Optometry degree. She plans to become an optometrist at optical clinics or eye centers, where she expects a starting salary of P40,000.

Why does she think this is what she should get? 

Baculi told republicasia that she considered the demand of her profession, the location of the clinic she would apply to, and of course, the years she would have to invest to finish her studies and get licensed.

For his part, Bermudez said a salary of P30,000 or more per month would allow him to live comfortably. The higher salary he can receive, the more things he would be able to do, he said. Bermudez aims to find a job in the business process outsourcing (BPO) industry once he graduates.

For him, this salary expectation might be rather “conservative” if he would take into consideration his other expenses such as food, rent, and a few online subscriptions for leisure and entertainment.

Reasonable, but not easy to attain

If one would ask 24-year-old Austin Bagallon if a monthly salary expectation of more than P30,000 is reasonable, her answer is yes. 

But if the question is is it really possible for an entry level worker to attain the said amount, then Bagallon believes it won’t be easy for first-time job seekers.

She has been working in a BPO company for four years, where she started as a customer support representative before being promoted to team leader.

Her salary expectation before joining the workforce was P23,000 a month. She had then wanted to pursue a career in the corporate setting, specifically in banking. The first offer she received was P21,000, which she declined considering the location of the company.

She instead chose the employer she’s currently working with since it is within her vicinity, although it offered her a salary of below P21,000. Bagallon said she had to consider the expenses she would need if she had to travel from her home in Meycauayan, Bulacan to Bonifacio Global City in Taguig daily.

Bagallon now earns a monthly salary range of P30,000 to P40,000 as a team leader, which took her two years to attain.

“Sa panahon ngayon, the P31K a month is basically reasonable if you want to live in a way na hindi ka na payslip to payslip, like hinihintay mo kailan ka ulit sasahod. P31K is really feasible and reasonable,” she said.

However, she believes that fresh graduates would have to work for a little longer to get this monthly income.

“As an entry level, hindi siya ganon pa ibinibigay, especially sa economy natin. Mahirap makakuha ng trabaho na nasa P31K agad ang entry level mo,” she said.

Barry Gapay, 31, also agreed that it would take a while for these Gen Zs to earn a salary exceeding P30,000 monthly. It would depend on the job position and the company they will apply for, said Gapay.  

Having years of experience as a kitchen crew member, Gapay said it is impossible for an entry level employee to attain the salary in the food industry. 

His current salary is at P16,000 a month, even after his 15 years of work experience. But thanks to service charge and other tips he receives in addition to his fixed income, Gapay can earn from P20,000 to P30,000 per month.

“I think sa mga malalaking restaurants or hotels, oo, kung magtatagal ka and kung magkakaroon ka ng posisyon. Pero hindi ‘yung first job. As in first job mo mag-e-expect ka ng P30,000 and above? Malabo,” he said.

Gapay said he was only expecting P10,000 to P15,000 a month as a first-time job hunter. At that time, he shared that he prioritized the experience that he could gain rather than the salary offered to him.

“Parang step-by-step kasi ‘yon eh. Kukuha ka ng experience dito para kung mags-stick ka doon sa job na napili mo, hanap ka ng ibang trabaho, then may experience ka na. Then maghahanap ka ng mas magandang offer para doon kasi nga may experience ka na eh,” he explained.

Many enterprises can’t afford to high pay 

Employers Confederation of the Philippines (ECOP) President Sergio Ortiz-Luis, Jr. also told republicasia that the expectation is always reasonable, but the reality might not be able to meet it. 

What’s more likely to happen for entry level workers is that they would be offered a minimum wage instead, Ortiz-Luis said.

“Alam mo, 90 percent who are enterprises are micro. So [workers] cannot expect that kind of salary in micro. All the 8 percent [of enterprises] is small, only 1 percent is medium, and less than 1 percent ‘yung large. 65 percent of employment comes from the micro,” he said.

“So just to be realistic about it, I don’t think they will get that from micro enterprises,” he added.

He also said that the possibility of getting the said salary expectation will depend on the job position and the employer. One of the industries that can probably give Gen Zs that expected salary are BPO companies, he said.

Expectation still possible

Daryl Balingit, chief operating officer and co-founder of US-based BPO company StartVirtual, said that the expected salary of more than P30,000 a month for an entry level is possible in BPO companies like his, as long as applicants can pass interviews and perform their jobs well.

Balingit told republicasia that the starting rate in their company can even be higher than P30,000 since its employees are paid in dollars. Aside from that, there are other benefits offered to the workers such as incentives or bonuses, especially if they are assigned to sales or lead generation accounts.

He also said that jobseekers who have no prior BPO experience can still apply and be accepted since StartVirtual, like other BPO companies, can provide training.

“What I’m sure of is [that] if you prove your worth through consistent exceptional results and accomplishments, you will be an asset to any business and it will be much easier to negotiate not just your rate, but even other benefits, perks and even the role you aspire by climbing up the corporate ladder,” he said.

“Though, employers also look at behavior and how fit you are in their culture and if you live by their core values. I’ve seen a lot of people who either never make it at all or never lasts or stays but never moves up because of their bad work habits or lack of passion and drive,” he added.

Entry level salaries

But not everyone can work or would like to work in the BPO industry.

In other industries, average entry level salaries vary. 

In its Salary Report 2022, JobStreet Philippines said that entry level workers can have a higher salary than junior executives who have one to four years of experience in other industries. Even the salaries of the same entry level positions depend on the industry they are in and their specializations.

So what are the entry level salaries in the industries based on the professions of Bagallon and Gapay, and the career paths that Baculi and Bermudez want to take?

In the telecommunications industry, entry level workers in the accounting/finance specialization can earn P16,100 monthly; P17,500 in the admin/human resources specialization; P18,000 in the engineering specialization; P24,000 in the sales/marketing specialization, and P18,000 in the services specialization.

The monthly salary of the entry level workers in the overall telecommunications industry is at P19,500.

In the healthcare industry, accounting/finance entry level workers can get P16,000 a month; P17,000 a month in the admin/human resources specialization;  P19,500 in the computer/IT specialization; P21,205 in the healthcare specialization; P13,949 in the manufacturing specialization, P18,000 in the sales/marketing specialization; and P18,500 in the services specialization.

Entry level workers in the overall healthcare industry can have an offer of P20,000 per month.

For the food & beverages industry, entry level workers specializing in accounting/finance can get paid P16,100 a month; P15,550 in the admin/human resources specialization; P16,800 in the engineering specialization; P12,000 in the hotel/restaurant specialization; P16,000 in the manufacturing specialization, P12,000 in the sales/marketing specialization; and P12,000 for those specializing in services.

Entry level workers in the overall food and beverage industry can earn P13,500 a month.

Entry level salary growth in other regions

JobStreet Philippines also said in its report that entry level workers in four regions in the country experienced salary cuts in 2022.

The workers’ median salary in Region I decreased to P17,204; P19,439 in Region IV; P19,500 in Region VII, and P18,500 in Cordillera Administrative Region.

Meanwhile, entry level employees in seven regions had an increase in their median salary. 

It went up to P22,316 in Region II; P20,250 in Region III; and P23,877 in Region V, Region VI, Region VIII, Region X, and Region XIII, respectively.

Medium salary for entry level positions in Region IX, Region XI, Region XII, and BARMM stayed at PHP22,316.

Minimum wage rates outside NCR

According to the National Wages and Productivity Commission of the Department of Labor and Employment, the current daily minimum wage rates outside Metro Manila are as follows: P400 in CAR, P372 – P400 in Region I, P400 – P420 in Region II, P344 – P460 in Region III, P350 – P470 in Region IV-A, P329 – P355 in Region IV- B, P365 in Region V.

In Visayas, the minimum salary in Region VI is at P410 – P450, P382 – P435 in Region VII, and P345 – P375 in Region VIII.

For regions in Mindanao, workers can earn a minimum wage of P338 – P351 in Region IX, P378 –  P405 in Region X, P428 – P443 in Region XI, P347 – P368 in Region XII, P350 in Region XIII, and P306 – P341 in BARMM.

Advice for future workers 

For the future talent pool, Balingit advises them to prepare for the role they are applying for. Do research about the job position and the reviews and ratings of the company, he said. 

If they are given the opportunity to work for the company of their choice but would not be offered with the salary they expected, he said it is up to them whether or not they will accept it.

“You have to remember, though, that the reality is unless you’re really the top of your class and have great recommendations and connections, opportunities are not going to be handed to you on a silver platter,” he said.

“Remember, take not what you think you deserve but what you know you’ve already earned. After all, actions and results still yell louder than just words and promises,” he added.