APAC salary budgets in 2018 are set to rise at a faster clip than in 2017 in most markets with India, China and Vietnam leading the way according to the 2017 Asia Pacific Salary Budget Planning Report by Willis Towers Watson. Salary budget increases in 2018 are projected to average 6.1% across the region, up from 5.9% in 2017.
The salary increases projected for next year reflect expectations for regional economic growth that’s more steady than steamy, with the pickup arresting two years of slowdown.
The rate of increase in salary budgets is expected to rise in nine Asia Pacific markets, and remain stable in twelve. Meanwhile, the lower inflation projected for 2018 in two thirds of the region’s markets—at an average 3.0%, down from 3.1% in 2017—will help individuals see a little bit more of their salary increases. Average real increases across the region will be 3.1% next year, compared to 2.8% in 2017.
A particular bright spot is India, which will see increases next year of 10% on average. Sambhav Rakyan, Data Services Practice Leader—APAC, Willis Towers Watson commented, “India shows high salary growth compared to other countries in the Asia Pacific region. Employers should be aware however that, given the decreasing pattern in the year-on-year salary increases, Indian employees could very well see single digit salary increases in the future.”
While India—along with Vietnam (5.7%) and China (5.1%)—will see the highest salary budget increases in real terms next year, Asia’s other highly populated developing market, Indonesia, is set to stand out too—although not for positive reasons. Across Asia Pacific, Indonesia will see the largest decline in real salary increases in 2018—up just 2.8% compared to 3.9% in 2017. Predictably, the developed markets of Hong Kong, Singapore, Australia, Japan and New Zealand will see among the lowest overall increases. Salary increases in Hong Kong and Singapore in particular are both expected to average 4.0%, but accounting for inflation, will only grow 1.7% and 2.4% respectively in real terms.
Paul Arkwright
Publisher
