In relation to inflation rates, Hong Kong is lagging behind its neighbour China in terms of Projected Salary Increases (PSIs), according to the Towers Watson 2013 Salary Budget Planning Report—Asia Pacific.
Against an inflation level of 4.3% in China, employers are expected to award salary increments of Employer of Choice 8.8% in 2013. Hong Kong and Singapore, however, have a far more paltry PSI to come, estimated to be 4.5% in both locations. With inflation set to hit 4.4% in Hong Kong and 3.8% in Singapore, employees will find their salary rises will not go far.
The Economist Intelligence Unit (EIU), responsible for collecting inflation data for the Asia-Pacific region, found that Bangladesh, India, Sri Lanka and Vietnam will be seeing the largest inflation hikes this year, although these will be offset by impressive PSIs of up to four percentage points over inflation. Inflation in Japan is estimated at 0%, with a 2% PSI.
Paul Arkwright
Publisher
