Asia to see highest real wage growth in 2017
In Singapore, over 75% of employers are still likely to implement salary increments in 2017 despite the negative economic outlook.
Real wages are forecast to increase by 4.3% in Asia, the highest globally.
The largest real wage increases are projected in Vietnam (7.2%), Thailand (5.6%), Indonesia (4.9%) and India (4.8%), revealed a new global study from organisational advisory firm Korn Ferry Hay Group.
Globally, real wage increases are forecast at 2.3%, down slightly from last year’s prediction of 2.7%.
In Singapore, the median base salary movement is forecast to be at 4% in 2017. Inflation for this year will be at -0.7%, therefore driving the real salary growth to be at 4.7 percent as compared to 3.7 percent in 2016.
However, Singapore’s economy in 2017 is projected to remain sluggish with most companies expecting only modest growth.
Despite this negative outlook for next year, the survey revealed that more than 75% of employers in Singapore are still likely to implement salary increments.
China, however, is expected to experience the biggest drop in Asia, with real wage increases predicted to fall nearly 2.5%, from 6.5% in 2016 to 4% next year. According to the survey, this reflects the country's weaker economic outlook for 2017.
“In this climate of slow economic growth, apart from wage increase, companies should also explore other creative ways to retain their talent,” said Stephen Choo, Senior Client Partner and Country Head of Global Productized Services at Korn Ferry Hay Group Singapore.