Filipino workers’ paid leave among lowest globally, study says

Filipino workers are entitled to some of the stingiest paid time off in the world, according to a new report by UK-based payroll and HR software provider Moorepay, putting the country behind most of its regional peers in guaranteeing rest days and vacation.

The study, which compared statutory leave entitlements across 187 economies, ranked the Philippines among the lowest globally. While Moorepay said that every country follows its own pattern when it comes to basic paid leave, labor advocates have warned that the lack of generous leave entitlements risks compounding burnout.

When counting both mandated vacation and public holidays, Filipino employees receive just 16 days of leave a year—the fourth-lowest total globally. Only the United States, which guarantees none, fared worse, followed by Japan with 10 days and Guyana with 12.

Within Southeast Asia, the Philippines lags behind Brunei (18), Thailand (19), Malaysia (19), Singapore (19), Vietnam (23), Indonesia (29), Myanmar (32) and Cambodia (40).

Annual leave

On annual leave alone, the Philippines guarantees just five days, the second-lowest in the world after the United States.

At the other end of the spectrum, Yemen offers the most generous statutory leave: 46 days, combining 30 days of annual vacation with 16 public holidays.

“Employers can use this knowledge to ensure their business stays competitive in the recruitment market. The amount of holidays you give as an employer is a major benefit for your employees,” said Michelle Hobson, HR services director at Moorepay.

Top talent

“By offering more than the minimum statutory leave, or offering more than the average pay package for annual leave, you can recruit and retain top talent,” Hobson added.

Looking ahead, Hobson said scant entitlements put extra pressure on employers and HR professionals to decide what their approach to annual leave is.

Not taking breaks, she noted, can lead to employees being stressed and burned out at work. This results in lower productivity and a higher risk of illness and absenteeism.

Paid time off, meanwhile, allows for necessary recuperation and restoring mental resilience, leading to happier employees, fewer sick days and higher levels of productivity.

Source: Inquirer

Philippines’ Misery Index falls in June 2025

The Philippines registered a significant improvement in its adjusted misery index in June 2025, reflecting a more favorable balance between inflation, unemployment, and underemployment. The index fell to 16.1 percent, compared to 18.5 percent in June 2024, signaling relief for Filipino households amid easing price pressures and stronger labor market conditions.

What is the Adjusted Misery Index?

The traditional misery index is calculated by adding inflation and unemployment. The adjusted version, however, includes underemployment—a more comprehensive gauge of economic distress. This provides a clearer picture of how many Filipinos are struggling not only to find jobs but also to secure stable, decent-paying work.

Formula:

Adjusted Misery Index = Inflation Rate + Unemployment Rate + Underemployment Rate

Key Economic Indicators (June 2025)

• Unemployment: Fell to 3.7 percent, equivalent to 1.9 million unemployed, an improvement from 4.5 percent a year earlier.

• Underemployment: Declined to 11.0 percent from 12.7 percent in June 2024, showing progress in creating better-quality jobs.

• Inflation: Registered 1.4 percent, a sharp drop from 3.3 percent in the same month last year, with food inflation almost flat at just 0.1 percent.

Putting these figures together:

June 2025 = 3.7 + 11.0 + 1.4 = 16.1%
June 2024 = 4.5 + 12.7 + 3.3 = 18.5%

What Drove the Decline?

1. Rice Price Stabilization

   • Government interventions, including tariff cuts and expanded supply programs, led to a historic decline in rice prices—down by 14.3 percent, the steepest fall in three decades.

2. Improved Labor Market

   • Expanded government hiring in education and healthcare, combined with job matching, internships, and training programs, reduced both unemployment and underemployment.

3. Lower Inflationary Pressures

   • Cheaper food commodities such as vegetables, corn, and sugar helped pull down consumer prices, benefitting especially low-income households.

Why This Matters

• For Households: The decline translates to greater purchasing power and better job security, particularly for vulnerable groups.

• For Policymakers: The results highlight the effectiveness of targeted programs in controlling food prices and promoting job creation.

• For Investors: Lower inflation and stronger employment signal a healthier macroeconomic environment, boosting investor confidence.

Outlook

While the drop to 16.1 percent is a promising sign, risks remain. Potential volatility in global oil markets, El Niño–driven food supply challenges, and animal disease outbreaks affecting pork prices could put upward pressure on inflation in the months ahead. Sustaining momentum will require continued government vigilance, particularly in keeping food affordable and strengthening inclusive job opportunities.

The Philippines’ adjusted misery index in June 2025 shows a clear improvement from last year’s 18.5 percent, reflecting easing inflation and stronger labor conditions. If these trends continue, Filipino households may enjoy a period of greater economic stability heading into 2026.

Source: Ziggurat Real Estate

Human performance in focus: What business leaders in the Philippines need to know

Business leaders in the Philippines are currently facing a critical gap. While most recognize the urgent need to adapt to the changing world of work, only a few believe that their organizations are responding effectively. The cost of inaction? A potential decline in productivity, trust, innovation and long-term resilience.

This insight comes from Deloitte’s 2025 Global Human Capital Trends study entitled “Unleashing Human Performance in a Boundaryless World,” which drew responses from over 13,000 voices across 93 countries, including 2,000 executives. Each year, the report offers a pulse check on how organizations are evolving and this year’s findings challenge leaders to rethink how they unlock human potential amid rising complexity. 

The modern workplace isn’t about choosing sides — it’s about balancing tensions: automation vs augmentation, agility vs stability and control vs empowerment. These aren’t problems to solve, but they’re dynamics to design around. True human performance doesn’t ask leaders to choose between business and people, it asks them to build systems that serve both.

Deloitte has identified three dimensions of human performance: work, workforce and organization and culture. These three elements present key areas where organizations must make strategic choices to unlock both human and business outcomes. 

The study presented the first dimension as rethinking work. Leaders around the world have overwhelmingly agreed that balancing stability and agility — or what Deloitte calls “stagility” — is essential in their operations. However, the challenges in achieving this are coming from the inside and not the outside. Internal blockers like outdated structures and varying leadership perspectives have hindered companies from focusing on what creates value rather than what just fills time. 

To move forward, businesses must shift from task-based roles to outcome-driven work, meaning their focus should be on empowering employees to redesign their workflows using AI and embracing flexible, skill-based models that adapt to change.

Simplification is another blind spot. Globally, 41 percent of work time is spent on low-value tasks, but the rise of new technologies poses opportunities to eliminate low-value tasks. Tech and data can be used to identify inefficiencies, and redesign processes with employee input. The “slack” or freed up time from the integration of tech to systems should be embraced as this is not a waste but a space for creativity, which could be a game-changer for the organization.

The second dimension is evolving the workforce, coming from findings that highlight the widening of the experience gap. Filipino companies struggle to find experienced hires while new workers struggle to gain experience — especially as AI takes over many entry-level tasks. This leads to a development vacuum or the growing difference between the skills and experience organizations need and what workers actually have.

The fix isn’t just more training, it’s rethinking how experiences should be built.

Apprenticeships, hands-on learning and AI-powered development tools can help bridge the gap. Work should be designed with career paths in mind, not just immediate outputs.

There’s also the digital employee value proposition (EVP) or the concept that tackles why and how people choose their employers in the AI era. As the technology transforms work, employees want more meaning, clarity, and support. Transparency about AI’s role and designing EVP strategies that help people thrive alongside machines — not compete with them — is essential.

Tech investment is another area where intent and impact don’t align. In the Philippines, only 4 percent of leaders believe their tech investments are delivering human value and it’s high time to redefine success metrics to include well-being, engagement and growth, not just efficiency.

Finally, the third identified dimension is rebuilding organizations for performance. Motivation is personal. Data can help decode what drives each employee — whether it’s recognition, autonomy, or purpose — and tailor experiences for them accordingly.

Performance management also needs a reset. Workers don’t trust traditional systems to measure their true value and there is a necessity to move from rigid reviews to daily coaching, meaningful feedback and enabling conditions for success.

The manager’s role is ripe for reinvention. With AI handling more admin and analysis, managers must focus on developing people, solving problems and guiding transformation. They need to be equipped not just to oversee tasks, but to coach, collaborate and catalyze agility. These are not just soft skills; these are hard currency in today’s world.

Considering these dimensions when forming a framework for one’s organization aids in managing the tensions between short-term results and long-term value. They drive leaders towards a reimagined workplace, one where performance management isn’t just traditional, but geared towards implementing efficiency-boosting practices directly into daily work life. 

The path forward lies in rebalancing work, workforce and workplace, not by solving tensions, but by embracing them. When we do, we don’t just optimize performance — we unleash human potential.

In a boundaryless world, that may be the most powerful advantage of all. 

Source: Manila Times