COMPENSATION & BENEFITS SALARIES ECA INTERNATIONAL
Asia Pacific - Employees in Singapore can expect salary increases of 3% in 2010, up from this year’s 2% average, according to ECA International’s latest Salary Trends Survey. In Asia, salary increase forecasts remain highest in the growth areas of China, India, Indonesia and Vietnam.
Salary increases within the region are predicted to average at 5% in 2010, almost twice as high as this year’s actual 2.8% average, and significantly higher than the average 2010 forecasts for Western Europe (2.6%) and North America (2.8%).
Results from the survey indicate that like their Singapore counterparts, employees in Hong Kong and Taiwan can also expect salary increases of 3% in 2010, compared with this year’s actual 1% and 0.5% increases respectively. Chinese employees are likely to see their salary increases rise from 3% to 6% at the next pay review.
The largest salary increases within the region are forecast for Vietnam (10%), India (9.3%) and Indonesia (8.5%), continuing a trend that persisted even during the economic turbulence of the last 12 months.
Employees in Japan are predicted to receive 2% salary increases – the lowest in the region. Whilst employees in Australia and New Zealand can expect to see an increase on the 2% awarded this year with companies there forecasting 3.5% and 3% rises respectively for 2010.
According to Lee Quane, ECA International’s regional director for Asia, while these numbers have not reached the levels of the boom years, the figures indicate that companies operating within the region are much more confident about economic conditions than a year ago.
“Asia has weathered the economic crisis better than many regions, defying predictions, and these increases suggest that many employers are actively making up for the fact that employees in 2009 typically experienced little or no uplift in their salary," Quane says.
However, as for why salary increases in developing Asia are higher than in locations such as Singapore and Hong Kong, Quane attributes this to companies making sure that salaries keep apace with inflation. "This is also a reflection of the demands of rapidly growing markets and the fierce war for talent in such locations.”
Furthermore, Quane adds that Singapore’s increases, like Hong Kong and Taiwan’s, are lower than the regional average because these are developed economies with low inflation rates. “Rises here are in line with similar developed economies elsewhere in the world such as North America and Europe."
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