APAC sees largest 2018 wage growth as Hong Kong wage growth slows

 APAC countries continue to outperform the rest of the world when it comes to real wage growth—calculated by subtracting inflation from actual wage growth—occupying eight of the top ten spots in the global rankings of real wage increases. According to the latest Salary Trends survey by ECA International, India is expected to keep the regional top spot in 2018, with a real rate of increase of 4.9% predicted, while Pakistan, Bangladesh, Vietnam, Indonesia, Thailand, Cambodia and China all feature in the global top 10.

These nations stand in stark contrast to more developed APAC countries, all of which struggled to boost real wage increases by more than 3%. Hong Kongers will see a real salary increase of 1.8% in 2018, while Singaporeans are expected to see a real salary increase of 2.7% in 2018, keeping Singapore ahead of Hong Kong once again.

Employees in Japan will receive the lowest rate of increase in nominal terms in 2018, with companies forecasting salaries to increase by 2.2%. However, in real terms, Australians will see the lowest increase in their earnings in 2018, with real wages expected to rise by only 0.8%.

Lee Quane, Regional Director–Asia, ECA International commented, “Although the real salary increases we expect to see next year are low compared to the rest of the region, on a global scale, salaries in developed APAC nations are still rising relatively fast. In addition, the increases are also generally respectable compared with other developed economies. This reflects the need for companies to continue to use pay increases as a means of attracting and retaining staff.”