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An increase in inflation will offset the income growth in 2014, resulting in wages lower than in 2013, a recent survey claims.
According to the latest salary trends survey by ECA International, which surveyed 316 MNCs across 64 countries, including 129 companies with Singapore-based staff, a 4.5% increase in salary growth is expected in 2014. However, after accounting for the rise in inflation, the rise in real wages will only amount to 1.8%.
Lee Quane, regional director of Asia of ECA International, said this figure “is down from the 2.2% real wage increases that employees in Singapore are currently experiencing”.
“Employees in Singapore are likely to feel worse off next year,” he added.
ECA reported Singapore ranked 11th in Asia, and 28th in the world as the country with the highest wage increase after accounting for inflation.
Despite the minimal real wage increase in Singapore, Asia is still anticipated to be the leading region where employees will see the highest real wage increases.
“After inflation, wages in Asia will rise approximately 3.2%. The average is just 1.8%,” the release stated.
China and Pakistan top the list of Asian countries with the highest wage growth respectively, even after allowing for inflation.