Asia-Pacific Region Poised for a 2.2% Real Pay Rise
Employees in the Asia-Pacific (APAC) region can look forward to a more substantial increase in their pay this year, as newly released estimates indicate that the average real-terms salary increase is projected to reach 2.2% for 2024.
This figure surpasses the average real-terms pay hike of 1.8% witnessed in 2023, according to insights from ECA International.
What’s more, the forecast for the APAC region in the upcoming year positions it as the global leader in real salary increments. Oliver Browne, the Remuneration and Policy Surveys Manager at ECA International, attributes this growth to the relatively lower impact of inflation in the APAC.
Browne noted, “Asian countries have experienced comparably milder inflation spikes, especially notable in China, which has had a cascading effect on many other countries in the region.”
Consequently, despite not having the highest nominal salary increases globally, the real-terms effect is more significant.
Projections for the Americas, encompassing both North and South America, suggest a 2% real salary change for 2024. Estimated real salary increases in other regions include:
United Kingdom (1.3%)
Africa and Middle East (0.8%)
Asian countries have experienced comparably milder inflation spikes, especially notable in China
Leading the way in the APAC region is India, with the highest projected real salary increase of 5.1%. Projections for other markets are as follows:
South Korea (2.2%)
Mark Harrison, General Manager, Asia for ECA International, explains, “Thanks to the advantage of a lower inflation rate compared to the rest of the world, most locations in Greater China, excluding Hong Kong, are among the top 10 globally for the highest real projected salary increases in 2024. Remarkably, Taiwan’s inflation forecast for 2024 is the lowest, and China ranks as the third lowest in the Asia Pacific region.”
In the meantime, Singapore, while not making it into the top 10, is expected to see a 0.5% increase in real salary. Initial predictions had already hinted at this rebound, as mentioned by Harrison.
Nonetheless, due to a relatively high inflation rate persisting this year, workers in Singapore find themselves worse off in real terms compared to 2022. Looking ahead to next year, there is optimism for a return to real salary growth in Singapore.