Indonesia, Singapore and Thailand expect highest wage rise in APAC for 2021
- Charles Chau
- Topics: Compensation and Benefits, Home Page - News, Indonesia, News, Singapore, Thailand
Indonesia tops the forecast for real salary increase at 3.8%, while Singapore and Thailand are tied in second place at 2.7%, according to a new survey from ECA International.
The expected rise in salaries next year is largely due to fewer companies implementing salary freezes, with only 22% of those surveyed saying they will continue to freeze salaries into 2021, as compared with 36% this year.
The average real salary increase across Asia Pacific is forecast to be 1.7%, which is significantly higher than the global average of 0.5%, according to the survey. However, the average level of inflation in the region is forecast at 2.4%, which is not far off the global average.
The real driver for higher real salary increases in Asia Pacific can be attributed to the sustained increase in productivity in many Asian nations, thus resulting in higher salary increases for workers.
READ: Indonesia: Central Java to increase minimum wage
Furthermore, for Indonesia, although 42% of the companies surveyed implemented a salary freeze, only 24% of these will do so in 2021 – contributing to the rise in average salary increases.
Other countries in the top 10 ranking include: South Korea (2.6%), China (2.3%), India (2.3%), Cambodia (2.1%), Bangladesh (2.1%), Taiwan (2.0%) and Japan (1.7%).
