The emerging economies of Vietnam and Thailand both saw significant real salary increases, placing them in the global top five, with increases of 5.1% and 4.1% respectively, according to a report by ECA International.
“Workers in Vietnam and Thailand will both see further increases to their salaries as the nominal salaries expected to be given by employers stay well ahead of the low levels of inflation that these countries will see in 2020. This has been a long-term trend for both countries, as productivity continues to grow and inflation is controlled,” said Lee Quane, Regional Director – Asia at ECA International.
ECA International is the world’s leading provider of information, software and expertise for the management and assignment of employees around the world. The annual Salary Trends Report analyses current and projected salary increases for local employees in 68 countries across the world.
Asian nations dominate the top 20 once again
Asian nations lead the way again for salary increases – 13 out of the top 20 increases in real salaries have been observed in Asian countries, occupying the top five spots in the global rankings.
“Once again, the vast majority of the highest real salary increases in the world are predicted to be seen in Asia. The average real salary increase in the Asia Pacific region is forecasted to be 3.2%, which is significantly higher than the global average of 1.4% and nearly three times the European average of 1.1%. This is a trend that we have seen for many years now due to low inflation and rising productivity in many Asian economies, resulting in the rapid growth of salaries compared to other regions.”
Lee Quane, Regional Director – Asia at ECA International.
The average real salary increase for workers in Singapore is forecasted to be 3.0% above inflation in 2020, a slight drop from the 3.3% increase that was seen in 2019.
Despite a nominal increase of 4.0%, employees will see an average increase of 3.0% after factoring in the predicted inflation of 1.0%. This places Singapore in 11th place in the Asia rankings.
“Although the forecasted real salary increase is set to be slightly lower in 2020 than the 3.3% Singapore employees saw in 2019, they will still see a larger increase than their regional neighbours such as Hong Kong, Taiwan and Japan,” said Lee. “The notably low level of inflation that Singapore has seen over the recent years, coupled with a tight labour supply and talent restrictions due to immigration constraints, implies that salary increases will remain relatively high.”
In China, the real salary increase is again expected to be above…