ECA International estimates Singapore's real salary growth will be 1% in 2023. ", For more information about access to the full study, visit https://aon.io/3VNzR8d. From determining how work gets done and how its valued to improving the health and financial wellbeing of your workforce, we add perspective. Approximately 22,570 sets of responses were received from companies across 168 countries worldwide. A Division of NBC Universal. News. At the same time, voluntary attrition is expected to reach pre-pandemic levels of more than 10% in 2022, up from 9.4% last year. That's because of the Indian economy's growth rate and "the need for salary growth to outstrip inflation," Quane told CNBC Make It. 2021-2022 saw higher pay increase budgets. Instant access. Companies in India continue to offer the highest salary increase in Asia Pacific (APAC) next year, up from the actual increase of 9.5% in 2022, Concerns over tighter labour markets and inflation continue to influence the higher projected salary budget, Concerns over a tighter labour market (68.3%), Employee expectations / concerns (44.7%) and, Anticipation of stronger financial results actual or forecasted (26.4%). (Thailand) Ltd (Company No.0105555103084) is part of the PageGroup. Nearly 73% of job holders in Thailand said they will start looking for new openings if their salaries are not raised soon. humanresourcesonline.net. Minimum daily wage in Thailand looks set to increase to 492 baht "Our survey indicates another tough year for workers globally in 2023," he added. More than half of the respondents (58%) have placed a broader emphasis on diversity, equity and inclusion (DEI), and 24% are planning or considering doing so in the next few years. "There is no one-size-fits-all approach for developing a salary increase strategy in a volatile environment. These numbers may vary from industry to another. 2023 Payscale, Inc. All rights reserved. "Even though the global situation is expected to improve next year with higher nominal salary increases and lower inflation on average, a 0.5% decrease in real terms is still expected.". However, the more employers that participate, the more valuable and actionable the data. At 10%, salary increases in India continue to be the highest in the APAC region. These are the key findings of the latest Salary Trends Survey published byECA International, the worlds leading provider of knowledge, information and software for the management and assignment of employees around the world. 944/5 Rama IV Road, Suriyawongse,Bangrak, Bangkok 10500 THAILAND. Concerns over tighter labour markets . You will get the updates within 24 hours. Few countries are expected to see a significant rise in the level of real salary increases in 2021, but there are exceptions to this within the Asia Pacific region. Mercer conducted the survey between April and June of this year, sending a questionnaire to 636 organisations in Thailand across 15 industries. As displayed in the chart, salaries in 2022 are 3% higher than those of 2021. The trend suggests a slow yet continuous increase in pay in 2024 and future years. In Singapore for example, almost three-fifths (57%) of companies have broadened their emphasis on DEI to retain more talent, with 26% planning or considering doing so. While inflation in Indonesia is expected to continue falling, repeating the trend we have seen in recent years, fewer companies in the country intend to freeze salaries implying that the nominal salary increases would have risen. He predicted that the next payment trend would be based on skilled base pay, which means that employees would be paid more or less depending on how many skills they have and whether or not the skills they have meet the needs of employers. This increase is particularly influenced by a continuation of the "tight labour market" and rising inflation concerns in APAC. SINGAPORE, August 1, 2022 Salary budgets for employees are projected to increase in 2023, mainly influenced by a continuation of the tight labour market and rising inflation concerns in Asia Pacific (APAC). Published by Statista Research Department , Mar 1, 2023. Glassdoor provides our best prediction for total pay in today's job market, along with other types of pay like cash bonuses, stock bonuses, profit sharing, sales commissions, and tips. More than ever, making the most of your capital means solving a complex risk-and-return equation. The study analysed salary trends and provided insights into Thailands recruitment situation in 2022 and provided predictions for 2023. Some companies are also making more frequent salary increase adjustments. Thailand approves 5% to 8% minimum wage increase As displayed in the chart, salaries in 2022 are 2% higher than those of 2021. Median salary increase budgets are forecasted across industries at 6.8 % for Indonesia 5 .1 % for Malaysia, 6 % for the Philippines, Singapore at 4.7 %, 5.1 % for Thailand and 7.9 % for Vietnam. In addition, the survey finds that Information Technology (65.5%), Engineering (52.9%), Sales (35.4%), Technically Skilled Trades (32.5%) and Finance (17.5%) will be most sought-after functions for recruitment in the next 12 months. Coming to their existing workforce, employers are utilising fresh ways to retain talent. Registered Office: 689 Bhiraj Tower at EmQuartier 41st Floor, Unit 4108 - 4109, Sukhumvit Road., North Klongton , Vadhana, Bangkok 10110 . Our model gets smarter over time as . No Charge. Meanwhile, half of the companies (51%) are still sticking with the pay budgets they set at the start of the year. Consumer goods and life sciences are expected to have the highest turnover, as these industries are on the mend, with more business opportunities and job openings. That's compared to other regions which will see drops in average real salary, the report showed. "With inflation increasing significantly in 2022, 78% of countries surveyed recorded a real salary decrease, and no European country saw a real-terms salary increase," said Lee Quane, ECA International's regional director. ". Compensation Strategy & Design|Total Rewards, Executive Compensation and Board Advisory, Financial, Executive and Professional Risks (FINEX). Banking salaries in Thailand are rising in the year 2023 based on recent submitted salaries and reports. Thailand and Singapore are joint-second place in the Asia Pacific rankings for real salary increases. In markets such as Singapore, more than one-third (34%) have already increased or plan to increase how often they raise salaries. Salary Max. Yet these professions are some of the most difficult to attract and retain, as three-quarters of companies experienced problems in attracting (75%) and retaining (70%) them. The ongoing shortage of technological and digital skills as firms compete to accelerate transformation and drive digital initiatives resulted in higher year-on-year increases in salaries and total compensation for tech and data analytics roles compared with other fields, Aon found. Workers in China are also amongst "a small group globally" who will receive the highest rates of real salary growth this year and the next, Quane said. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable successand provide perspective that moves you. SINGAPORE (8 December 2022) - Aon plc (NYSE: AON), a leading global professional services firm, today released insights from its 2022 Salary Increase and Turnover Study. End of main navigation menu. Although higher salary increases are expected, various industries are showing different developing rhythms. It's understood that 2 agencies representing . Rahul Chawla, partner and head of Human Capital solutions for southeast Asia at Aon said, "While it is critical for businesses to define and adapt pay for different worker types and the nature of the work, organisations must stay agile as they rethink their pay principles. Thai employees likely to seek new jobs if their salaries remain As displayed in the chart, salaries in 2022 are 3% higher than those of 2021. The term 'Annual Salary Increase' usually refers to the increase in 12 calendar month period, . WTWs latest Salary Budget Planning Report found that salary budgets for employees in India are projected to increase in 2023, mainly influenced by a continuation of the tight labour market and rising inflation concerns. Companies are taking non-monetary actions for talent attraction and retention, Coming to their existing workforce, employers are utilising fresh ways to retain talent. Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region! She said that demand from 2021 and 2022 has accumulated, while the size of the talent pool has remained the same, especially since many expatriates left the country during the Covid-19 pandemic. Payscale customers, From collection to validation, our data methodology delivers certainty, Meet the leaders dedicated to empowering better conversations around pay, From start-ups to Fortune 100 enterprises, businesses are shaping the future of compensation with the help of Payscale, How Cardata created a compensation framework to support a sustainable growth model, Our compensation community available exclusively to Payscale customers, Meet our partners who extend the value of your Payscale experience and investment, Join pay transparency enthusiasts from Apptio and Payscale to hear how organizations, Join our bench of pay equity experts as they walk through the, Track and compare wage-growth by city, industry, company size, and job category, Take control of finances by learning about the types of nontaxable income, A well-crafted problem is essential to driving progress. Soaring inflation is set to put a major dent in salary increases for the second year running in 2023, according to a new survey that sees just 37% of countries globally expecting to report real-term wage hikes. Although nominal salary increase rates in China are not amongst the highest in APAC, low rates of inflation mean that workers there received the highest rate of salary growth in real terms. APAC salary: Asia leads 2023 real wage growth; jumps in India, China - CNBC However, he stated that competing solely on wages is unsustainable; hence, employers may want to focus more on their employees' value proposition in areas such as pay transparency, a clearer career path, and improved well-being through flexible work arrangements and wellness programmes. ", The survey further revealed that salary increases in 2022 varied across industries across the region, with the retail industry having the highest increases (6.5 %), followed by technology and life sciences (6.1 %) and financial institutions (5.9 %). "Firms are paying a premium to attract new talent at the junior and middle management levels for these roles. Purchaser salaries in Thailand are on the rise in the year 2023 based on recent submitted salaries and reports.