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Singapore, however, is expected to hold its overall salary budget at 4.1% for a second consecutive year, which is the lowest rate among the six markets surveyed.
Employers across Southeast Asia are budgeting for slightly higher salary increases in 2027, with an average of 5.2% expected for the year, according to Aon’s latest Salary Increase and Turnover Study.
Singapore stands apart from its regional peers. Employers in the country are budgeting for average salary increases of 4.1% in 2027, which is unchanged from 2026 and below the Southeast Asian average. This makes Singapore the lowest among the six markets surveyed, although the figure remains close to the country’s 4.3% salary increase in 2025.
Elsewhere, budgets are set to inch up: Vietnam is projected to lead the region with a 6.7% increase, followed by Indonesia at 5.5% and the Philippines at 5.3%. Malaysia and Thailand are expected to budget 4.8% and 4.6% respectively.
Pay, however, is only part of the retention equation. Singapore’s overall employee turnover rate is projected at 16.8% in 2026, comprising 11.3% voluntary and 5.5% involuntary turnover.
Malaysia and the Philippines record higher overall turnover rates at 17.4% and 17.3% respectively, while Vietnam records the highest voluntary turnover at 13.2%. Indonesia has the lowest overall turnover at 15.5%.
Turnover also varies significantly by industry. Consulting, business and community services records the highest overall turnover at 21.5%, followed by manufacturing at 17.9% and financial services at 17.7%.
Retail and hospitality and technology have the lowest voluntary turnover rates among the sectors surveyed, at 11.0% and 11.1% respectively.
Meanwhile, data and AI remain the most in-demand roles, cited by 64% of organisations, followed by front-office roles at 56% and cybersecurity at 44%.
READ MORE: Singapore's core inflation hits two-year high of 2.2% as services, food, and retail costs rise
Lead image and infographics / Aon
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