Remittances growth hit 5-mo high of 3.7% in Sept

Money sent home by overseas Filipino workers (OFWs) jumped by an annual 3.7% in September, the fastest pace in five months, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Data from the central bank showed cash remittances rose to $3.12 billion in September from $3.01 billion in the same month in 2024.

This was the fastest growth since the 4% logged in April.

Month on month, cash remittances increased by 4.84% from $2.977 billion in August.

For the first nine months of the year, cash remittances sent through banks increased by 3.2% to $26.03 billion from $25.23 billion a year ago.

“The United States remained the top source of remittances to the Philippines during January-September 2025, followed by Singapore, and Saudi Arabia,” the BSP said in a statement.

Cash remittances from the US accounted for 40.4% of the total in the nine-month period.

This was followed by Singapore (7.1%), Saudi Arabia (6.4%), Japan (4.9%) the United Kingdom (4.8%), the United Arab Emirates (4.5%), Canada (3.5%), Qatar (2.9%), Taiwan (2.8%) and South Korea (2.5%).

Meanwhile, personal remittances went up by 3.8% to $3.46 billion in September from $3.34 billion a year earlier.

In the January-to-September period, personal remittances rose by 3.2% to $28.97 billion from $28.07 billion a year ago.

Personal remittances include both cash coursed through banks and informal channels as well as in-kind remittances.

Analysts said OFWs sent home more money starting September, as the holiday season approaches.

“The ‘ber’ months effect kicked in early, with OFWs sending more ahead of the long holiday season,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

He added that the strong labor market and a competitive peso also supported remittance growth in September.

The peso closed at P58.196 per dollar on Sept. 30, weakening by P1.066 or 1.87% from P57.13 on Aug. 29.

In September, the country’s unemployment rate improved to 3.8% from 3.9% in August. For the first nine months, the jobless rate stood at 4.1%, a tad higher than 4% in the same period last year.

“The onset of ‘ber’ months marks the start of the holiday season for Filipinos. Thus, we may expect OFWs to send their earnings to their families here for the celebrations and gatherings,” Oikonomia Advisory and Research, Inc. economist Reinielle Matt M. Erece said.

Mr. Erece said remittance growth could be faster from October to December, before stabilizing in January 2026.

“For the fourth quarter, expect remittances to stay resilient and peak in December. BSP’s 3% full-year growth target looks well within reach,” Mr. Ravelas likewise said.

The BSP expects cash remittances to grow by 3% to $35.5 billion this year.

Source: Business World

Overseas Filipinos’ access to retirement funds expanded

The Bangko Sentral ng Pilipinas (BSP) has amended its regulations to expand investment opportunities for overseas Filipinos by allowing their retirement funds to freely invest in central bank securities.

Personal Equity and Retirement Account-Unit Investment Trust Funds (PERA-UITFs) will no longer be subject to a 10-percent foreign ownership cap. The policy change recognizes that PERA-UITFs may include overseas Filipinos who are considered non-residents under existing regulations.

“The move reflects the BSP’s continued effort to promote financial health. It helps Filipinos, both at home or abroad, build secure and sustainable retirement savings,” the central bank said. “It also helps develop the country’s private pension system and strengthens domestic capital markets.”

PERA contributions climbed to P491.4 million in 2024, up 24 percent from P396.3 million a year earlier, as more Filipinos joined the voluntary savings program. The number of contributors also increased by 6.4 percent to 5,912 from 5,555.

Employed workers accounted for the largest share, contributing P341.7 million from about 4,211 participants. Overseas Filipinos followed with P82.25 million from 789 contributors, while 912 self-employed individuals invested a combined P67.39 million.

The central bank noted that nine out of 13 PERA-UITFs currently exceeded the 10-percent non-resident ownership limit, preventing them from investing in BSP securities. The updated policy will now allow these funds to diversify their portfolios and enhance potential returns for investors.

Under the revised Section 601-Q of the Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions, trust entities are still required to report the participation of non-residents in their UITFs and maintain proper internal controls, monitoring systems, and assurance mechanisms.

Trust entities must continue submitting timely, accurate, and comprehensive reports on non-resident funds to the BSP. They must also make available all relevant documents and information for verification of compliance with the terms and conditions governing access to the BSP Securities Facility.

UITFs are investment vehicles managed by banks and trust companies under BSP supervision. They pool funds from various investors, including those with small contributions, to form a diversified portfolio.

These are comparable to mutual funds, which are regulated by the Securities and Exchange Commission and managed by investment companies.

Source: Manila Times

Firms expect 5.2% pay hike in 2026 as 1 in 5 workers plan to quit

Companies in the Philippines are projecting only modest pay increases next year despite facing the steepest employee turnover rates in Southeast Asia.

The 2025 Salary Increase and Turnover Study by British-American consulting firm Aon projects an average 5.3% salary increase across Southeast Asia in 2026, signaling a stable but cautious compensation outlook as firms confirm a region-wide retention crisis and widening skills gaps.

“The 5.3% regional average reflects stable growth but underscores that competitive pay alone is no longer enough to retain skilled employees,” Aon said in its analysis.

The study analyzed data from more than 700 companies across six Southeast Asian markets, including Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines.

The study shows that while most countries in Southeast Asia are keeping pay hikes moderate, Vietnam leads the region with a projected 7.1% salary increase next year, followed by Indonesia at 5.9%.

By contrast, Singapore and Thailand are among those keeping a tighter rein on compensation growth, with average increases of 4.3% and 4.7%, respectively.

Philippine companies' dilemma

In the Philippines, salaries are expected to rise moderately by 5.2% in 2026, which is slightly lower than this year’s 5.3% increase. The rate just sits below the regional average.

The country, however, is seen to have highest attrition rates in the region entering 2026, as one in five employees is expected to voluntarily leave their companies.                      

Source: Aon plc — 2025 Salary Increase and Turnover Study.

 This projected 20% attrition rate in the Philippines surpasses Singapore’s 19.3% and Malaysia’s 18.2%, underscoring a growing challenge among Philippine employers to hold on to skilled staff amid rising job mobility across industries. 

Sectors most affected include information technology, sales, engineering, and cybersecurity, where global demand for digital talent continues to pull Filipino workers toward better-paying opportunities abroad and in multinational firms.  

Source: Inquirer