Which APAC countries lead region in terms of real salary growth?
Employees in the Asia-Pacific (APAC) region should expect a bigger pay increase this year after new estimates revealed that the average real-terms pay increase there will hit 2.2% for 2024.
This is higher than the average real terms pay increase of 1.8% this 2023, according to ECA International.
The prediction for APAC next year also shows the region leading the rest of the world when it comes to real salary increases.
Oliver Browne, Remuneration and Policy Surveys Manager at ECA International, attributed the real salary growth to the lesser impact of inflation to APAC.
"Asian countries have been comparatively less affected by the spikes in inflation witnessed elsewhere, with particularly low inflation in China having a knock-on effect in many other countries in the region," Browne said in a statement.
"As a result, despite not seeing the highest nominal salary increases in the world, the real-terms effect is greater."
The Americas, which include both the North and South, is projected to get a two-per-cent real salary change for 2024. Estimates for other regions show:
- United Kingdom (1.3%)
- Africa and Middle East (0.8%)
- Europe (0.9%)
India leads APAC
In APAC, India emerged on top of the nations with the highest projected real salary increase with 5.1%. Forecast for other markets show:
- Indonesia (4.3%)
- China (4.1%)
- Vietnam (3.6%)
- Thailand (3.4%)
- Taiwan (2.5%)
- Macau (2.3%)
- Malaysia (2.3%)
- Philippines (2.3%)
- Cambodia (2.2%)
- South Korea (2.2%)
"Due to the advantage of a lower inflation rate compared to the rest of the world, most locations in Greater China except Hong Kong rank among the top 10 globally for the highest real forecast salary increases in 2024," said Mark Harrison, General Manager, Asia for ECA International, in a statement.
"Notably, the inflation forecast for Taiwan in 2024 is the lowest, and China ranks as the third lowest in the Asia Pacific region."
Singapore rebounds
Meanwhile, despite not landing in the top 10, forecast for Singapore's real salary showed that it will see a 0.5% increase.
Initial projections showed that Singapore was already expecting this rebound this year, according to Harrison.
"However, as a relatively high rate of inflation persisted, workers in Singapore are worse off this year in real terms than they were in 2022. Looking forward to next year, it is expected that Singapore will see a return to real salary growth," Harrison said.