High-paying entry-level IT Jobs in demand; still NOT enough

For some, the terms “high-paying” and “entry-level” when referring to jobs might not be the best match of words. Yet a recent study by e-commerce platform iPrice showed that entry-level jobs related to digital and technology fields earn incomes relatively higher than minimum wage levels in the Philippines. The same study observed, however, that if financial independence is the aim, even top entry-level digital jobs may not be able to afford them.

Following new wage hikes approved by the government, the highest daily minimum wage in the Philippines amount to PHP 570USD 10INR 823EUR 9CNY 71 a day (said rate applies for Metro Manila). That means around PHP 11,400USD 194INR 16,468EUR 185CNY 1,415 for twenty working days. In the public sector, meanwhile, the lowest salary grade (SG-1) amounts to PHP 12,517USD 213INR 18,082EUR 203CNY 1,553 a month as of 2022, this following the Salary Standardization Law of 2019 (also known as SSL V). How do entry-level tech jobs compare?

Using data available from Payscale, the iPrice study found junior IT technicians averaging at PHP 15,000USD 256INR 21,669EUR 243CNY 1,862 per month. Junior graphic designers would not be far, averaging at PHP 15,085USD 257INR 21,792EUR 245CNY 1,872 monthly. From there, the numbers had nowhere to go but up. See the following average incomes for other entry-level tech jobs.

• Junior digital marketing specialist: PHP 20,083USD 342INR 29,012EUR 326CNY 2,492
• Junior data analyst: PHP 21,893USD 373INR 31,627EUR 355CNY 2,717
• Junior community manager (social media manager): PHP 22,000USD 375INR 31,781EUR 357CNY 2,730
• Junior software developer: PHP 23,436USD 399INR 33,856EUR 380CNY 2,908
• Junior front-end developer: PHP 24,303USD 414INR 35,108EUR 394CNY 3,016
• Junior software engineer: PHP 25,315USD 431INR 36,570EUR 411CNY 3,142
• Junior UI/UX designer: PHP 30,338USD 517INR 43,826EUR 492CNY 3,765
• Junior project manager: PHP 30,813USD 525INR 44,512EUR 500CNY 3,824

When placed in comparison with minimum wage levels, entry-level tech jobs in the Philippines gives the opportunity to earn over double the current minimum wage for the highest-paying categories. Job finding site Indeed defines “entry-level” as occupation typically requiring minimal education, training, and experience.

However, iPrice noted that the average monthly rent for one bedroom apartment in five major central business districts (CBDs) in Metro Manila would be around PHP 32,500USD 554INR 46,950EUR 527CNY 4,033, higher than any of the digital-related entry-level jobs earlier mentioned, and nearly triple the minimum wage. How about financing other essential expenses such as utility bills and groceries? For that matter, would there be room for savings and investments for young professionals?

“If Filipino entry-level workers aspire to live independently at an early age like some of their Asian peers in Singapore or Malaysia, then it may be very difficult or even uncomfortable,” stated iPrice, citing that they used data available from Numbeo to ascertain the average rent costs in Makati, Pasig, Taguig, Quezon City, and Manila.

In relation to this, Former National Economic and Development Authority (NEDA) Director General Ernesto Pernia said in a 2018 interview with GMA News that PHP 42,000USD 716INR 60,673EUR 682CNY 5,212 a month would be needed for a family of five members to “at least to live above the poverty line.” To start a family, meanwhile, iPrice offered its own estimate for the period December 2020 to October 2021: around PHP 61,000USD 1,039INR 88,121EUR 990CNY 7,570 to cover a newborn baby’s basic supplies.

To put things into perspective, the Bangko Sentral ng Pilipinas (BSP) in its latest Monetary Policy Report expects 2022 inflation to settle at 4.6 percent. Assuming prices rose by an average of 4 percent per year, something worth PHP 1,000USD 17INR 1,445EUR 16CNY 124 five years ago would cost around PHP 1,200USD 20INR 1,734EUR 19CNY 149 today. Had your wages caught up with the price trend?

Perhaps on a brighter note, landing a tech job in this economy appears to have good prospects. According to online education technology (EdTech) company Refocus, digital-related jobs are in-demand.

“The past few years have shown great potential for more companies to hire IT and digital marketing professionals to help grow their businesses,” said Refocus founder Roman Kumas Vyas in a press release. 

This was supported by data from the Department of Trade and Industry (DTI), which reported on Labor Day 2022 that it has surpassed its 2021 target to create a million jobs through the National Employment Recovery Strategy (NERS), a program aimed to provide jobs in the midst of the pandemic.

“My recollection is about 980,000 jobs already created, bulk of which actually are coming from the construction and IT-BPM (information technology and business process management), and now the recovering tourism and the restaurant sectors as we are reopening that particular sector,” said DTI Secretary Ramon Lopez.

It still depends, however, if available vacancies at this time would match the skills of the unemployed, and if the offered salaries would be sufficient for their daily cost of living. Having work is one thing, but as one study in PNAS demonstrated, experienced well-being also rises along with higher incomes. While salary may not be the only aspect that makes a job fulfilling, and money is not a definitive indicator of success, it helps meeting people’s needs. Striking a balance between job satisfaction and compensation for work remains a contentious topic even to this day.