KUALA LUMPUR – According to the latest Salary Trends Report by ECA International (ECA), Southeast Asian nations will be amongst those countries expected to see the fastest rate of salary increase in 2022 versus 2021 as their economies recover. This includes Indonesia, Vietnam, Thailand and Malaysia as their economies begin to recover from the effects of the COVID-19 pandemic and international travel resumes.
“Indonesia and Malaysia were among the countries most impacted by the pandemic and are expected to see some of the biggest jumps in rates of salary growth in Asia Pacific in 2022 compared to 2021, as their respective economies start to return to normality after the pandemic,” said Lee Quane, Regional Director – Asia at ECA International.
“If these countries are able to keep inflation under control in 2022, the improved economic outlook will mean that real salary increase rates for workers in these countries will be some of the highest in the region.”
The annual Salary Trends report analyses current and projected salary increases in more than 70 countries and cities across the world.
As in previous years, the Asia Pacific region is expected to lead the way once again in terms of salary increases for workers with a predicted average real increase of 1.9% across the region. This is higher than any other region, with the global real salary increase forecasted to be just 0.9% on average.
Workers in Singapore will see a higher increase to their salaries in 2022, with expected average salary increases of 3.5%. After factoring inflation, which looks set to remain around the same levels as this year at 1.5%, employees in Singapore will see a real salary increase of 2.0% on average – up from 1.2% this year.
Workers in China are predicted to see the second biggest salary increase in the region next year in real terms at 4.0%, only surpassed by Vietnam.
Workers in Hong Kong will see their salaries increase at a faster rate in 2022 than in 2021, although not as fast as many other Asian nations. Salaries are set to rise by 3.2% on average in 2022 and after factoring in the forecasted 2.1% inflation for next year, this means workers in Hong Kong will be left seeing a real salary increase of 1.1% – almost double the real salary increase of 0.6% that was seen this year.
Outside of Asia, the outlook looks set to be much more mixed as the average salary increase globally is predicted to be 4.6% – however, when factoring in the higher levels of inflation elsewhere in the world, the real salary increase worldwide will be just 0.9%.
Argentina is once again at the bottom of the rankings with a forecast real salary decrease of 10.0% in 2022, despite the fact that inflation is predicted to halve to 25.0% in from 51.4% this year.