Asean workers could get some of the world's biggest salary hikes in 2022: report

SALARIES in South-east Asia are set to increase at the fastest year-on-year pace worldwide, as low regional inflation lends a lift to wage gains in 2022, a recent survey has found.

That's as workers in the broader Asia-Pacific could see an average real increase of 1.9 per cent in pay, compared with 0.9 per cent globally, once the effect of inflation has been excluded.

And, within the region, "South-east Asian nations will be amongst those countries expected to see the fastest rate of salary increase in 2022 versus 2021 as their economies recover", employee services firm ECA International said in a report on Tuesday (Nov 16).

"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."

Vietnam led the pack in Asean, with a projected real salary increase of 4.2 per cent, beating both mainland China (4 per cent) and India (3.6 per cent).

Thailand also clocked an above-average forecast of 3.2 per cent, with Malaysia at 2.8 per cent, Indonesia at 2.5 per cent, the Philippines at 2.1 per cent, and Singapore at 2 per cent.

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Lee Quane, Asia regional director for ECA, said in a statement that Indonesia and Malaysia were among the worst-hit countries during the pandemic and added: "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 forecast raises could mean a large sequential jump for some employees next year, especially as workers in the Philippines saw their salaries go up by just 0.5 per cent in 2021; workers in Singapore, 1.2 per cent; and workers in Malaysia, 1.5 per cent.