Why Your Coworker Earns More Than You — and How to Close the Gap
Introduction
It’s frustrating: You work just as hard as your coworker, yet they bring home a noticeably higher salary. In the Philippines—where discussions around pay are still often quiet—this kind of disparity not only affects your finances but also your sense of fairness. Understanding why the gap exists is the first step; closing it is the goal. Let’s break it down.
1. Common Reasons Behind Salary Disparities
• Timing & Market Shifts
Companies sometimes adjust pay midstream. For instance, when a position is filled quickly, recruiters may offer a higher salary than what existing employees received—just like the viral case of a TikTok creator discovering a new hire earned USD 25,000 more for the same job (New York Post).
• Seniority and Experience Levels
More tenure, credentials, or unique experience can justify higher pay. It’s not always a bias—sometimes it’s earned through specialization.
• Negotiation Power (or the Lack Thereof)
Not everyone negotiates confidently. But research shows that well-prepared negotiation can yield thousands more over time (Investopedia, Harvard Business School Online).
• Pay Transparency & Taboo
In cultures where salary talk is restricted, many workers are unaware of disparities or avoid confronting them. Yet among younger generations—86% of Gen Z and 59% of Millennials in Australia—salary transparency is embraced (News.com.au). The trend is gaining momentum globally.
2. Why Pay Gaps Persist: Structural and Social Factors
- Gender and Parenthood Penalty: Women, especially mothers, tend to earn significantly less. In the U.S., motherhood alone can reduce earnings by up to 15% compared to childless men (Wikipedia).
- Opaque Salary Policies: When employers withhold pay ranges or discourage transparency, employees lack negotiation leverage (TIME, Wikipedia).
- Generational Norms: Older workers may avoid salary conversations more than younger ones, leading to entrenched inequities (News.com.au).
3. How to Close the Gap: Actionable Steps for Filipino Workers
A. Research Your Market Value
Utilize platforms like Glassdoor, Payscale, or local job boards to gather salary data. Be sure to account for role, location (e.g., Metro Manila vs Cebu), industry, and experience (Investopedia, Michael Page).
B. Document and Quantify Your Impact
Highlight measurable accomplishments: “Increased sales by 30%,” “Managed cost reduction projects worth ₱1M,” etc. These add strong support to your case (Michael Page).
C. Practice Assertive & Collaborative Negotiation
Frame the conversation around value—not demand. As one study noted, those who presented collaboratively secured average starting salaries $5,000 higher (Investopedia).
D. Consider the Entire Compensation Package
If immediate salary raises aren’t feasible, explore alternatives such as bonuses, flexible hours, additional leave, or professional development support (Department of Labor, Investopedia).
E. Normalize Salary Conversations (When Safe to Do So)
Where possible, discreet pay transparency within your peer or professional network can help. In Australia, peer salary sharing has become a "bargaining tool"—especially for those concerned about underpayment (News.com.au).
F. Don’t Be Afraid to Explore Other Options
Sometimes, it’s simply more rewarding to switch jobs. Many professionals only close the pay gap by changing employers, especially if their current company resists equity (New York Post).
Local Angle: Philippines Context
- Cultural Sensitivities Still Strong: Salary talk remains relatively rare in many Filipino workplaces—but regional hubs like Manila are gradually catching up.
- Cost-of-Living Pressures Rising: With inflation and high urban living costs, securing fair pay is increasingly urgent.
- Industries in Demand: BPO, tech, finance, and engineering roles are especially competitive—and ripe with negotiation potential.
Pro Tips:
- Tailor your research to specific cities—salaries in BGC or Makati differ from provincial comparators.
- Emphasize local cost savings or productivity gains that your work enables.
Final Thoughts
Unfair pay can sting—but knowledge is power. By understanding the reasons behind pay disparities and equipping yourself with negotiation strategies, you can confidently bridge the gap—without burning bridges. Remember: value your work, know your worth, and pursue fairness intelligently.
Would you like help tailoring this further—for example, drafting your negotiation email, inserting local salary data for your industry, or writing a catchy headline for your blog?
