According to the latest Salary Trends Report by ECA International (ECA), 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.
Asia Pacific is expected to lead the way once again in terms of global 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.
See: Singapore professionals can look forward to 2.7% real-terms rise in 2018 salary: ECA
On that note, Southeast Asia nations also amongst the top countries in Asia Pacific to see fastest rate of salary increase in 2022 as their economies begin to recover from the effects of the Covid-19 pandemic and international travel resumes – with Vietnam ranked first in Asia Pacific and globally at a predicted real salary increment of 4.2%. This is followed closely by workers in China, who are predicted to an increase in real terms at 4.0%.
“Workers in Singapore are set to see a notably higher increase to their salaries than in previous years, with the predicted 3.5% rise up from 2.8% this year and 2.5% in 2020,” said Lee Quane, Regional Director – Asia at ECA International. “Similarly, we are forecasting that just 6.0% of companies based in Singapore will implement a pay freeze in 2022, significantly down from the 22.0% that put in a pay freeze this year. This all points to a much-improved outlook for workers in Singapore as the economy gradually recovers from Covid related restrictions and uncertainty.”
See also: Retrenchments increase in 3Q2023; economic headwinds to continue weighing on labour market: MOM
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%.
Photo: Bloomberg
