Singapore workers to get 2.7% pay increase in 2018

Marco Green
November 15, 2017

Hongkongers are estimated to see a 4 per cent salary increase next year - the same increment for the third year in a row.

Hong Kong workers are set to see their salaries rise by a mere 1.8 per cent next year after factoring in inflation, putting them near the bottom of 20 Asia-Pacific economies for the second straight year.

Salaries will go up by 2.8pc, according to the annual salary trends report from consultancy ECA International, which expects inflation to come in at 2.6pc - giving real wage growth of just 0.2pc over 2018. Despite this, the salary increases for 2017 and 2018 are higher than in Hong Kong and compare favourably with other developed economies in the region and globally. On a global scale, Singapore took 14th place. When inflation was factored in, the real salary increase hit 2.7%.

Argentina topped the global list with a projected real wage growth of 7.2 per cent.

The annual poll noted that employers in Singapore are prepared to raise wages by about 4 per cent in 2018 - same as past year but higher inflation is "reducing real-term pay awards".

"India is expected to keep the regional top spot in 2018, with a real rate of increase of 4.9 percent predicted", it said.

Among South-east Asian countries surveyed, Vietnam and Indonesia ranked a joint fourth globally, ahead of Thailand (6th) and Cambodia (10th).

In Malaysia, low unemployment and a strong economy have kept nominal wage increases above 5 per cent for several years and this will continue in 2018, the survey said.

However, Australians will see the lowest increase in their earnings in 2018, with real wages expected to rise by only 0.8 per cent, the survey found. With inflation expected to fall back slightly, employees can look forward to a boost in real salary increases to 2.3 per cent next year.

"This, combined with higher inflation, which is expected to be 2.6% next year, has caused something of a pay crunch for United Kingdom workers".

Only professionals in Hungary, Poland and Ukraine are anticipated to have lower pay increases than those in Britain.

In North America, the United States and Canada are set to remain steady, with real wages growing at 0.9 and 1.1 per cent respectively.

Other reports by Click Lancashire

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