January 25, 2016
Asia-Pacific region salaries are expected to increase by an average of 7.3 % and according to a recent labor-market study - wages in Thailand expected to rise by 5.9%. The developing markets in the Asia-Pacific region continue to take the lead with salary increases and are expected to result in positive real wage growth in the region.
According to global consulting firm Mercer's total-remuneration and salary- movement snapshot surveys and biannual market-pulse surveys found on nationmultimedia.com - Thailand salaries are expected to increase by 5.9%, Malaysia-5.7%, South Korea 4.9 %, Hong Kong 4.6%, Singapore 4.1%, Taiwan 3.9 %, Australia 3.5%, and Japan 2.2%. Along with the surveys, "real wage growth" (measured as salary increases minus inflation rate) is great news for emerging markets and is also an important indicator according to Mercer.
The salary increases continue at double digits or high single digits in some of these emerging markets such as Vietnam, India and Indonesia. However, real wage growth still remains low, due to high inflation rates in these countries. All things considered, salary increases are expected to be higher than inflation throughout the Asia-Pacific region, resulting in real wage growth.
When comparing these countries with more developed markets, salary levels are still considered low based on percentages. On the other hand, keeping things in perspective, real wage growth is excellent news for emerging markets in the Asia-Pacific region.
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Founder & CEO, Tiger-Consulting