Work­ers to see 2.7% rise in salary

The New Paper - - BUSINESS -

New sur­vey projects wage growth across world

Work­ers can ex­pect salary in­creases of 2.7 per cent next year af­ter in­fla­tion, ac­cord­ing to a new sur­vey.

The poll fore­casts in­fla­tion to be 1.3 per cent for next year, so that means wage earn­ers should ex­pect to see a nom­i­nal salary hike of 4 per cent.

“Over the past few years, in­fla­tion in Sin­ga­pore has in­creased while nom­i­nal salary in­creases have stayed flat, which has had the ef­fect of slowly erod­ing pay rises in real terms,” said Mr Lee Quane, re­gional di­rec­tor of Asia at ECA In­ter­na­tional, which con­ducted the poll.

“De­spite this, the salary in­creases for 2017 and 2018 com­pare favourably with other de­vel­oped economies in the re­gion and glob­ally.

“This re­flects the fact that the Sin­ga­pore econ­omy con­tin­ues to per­form well on the back of the global eco­nomic re­cov­ery.”

ECA’s pro­jected wage growth ranks Sin­ga­pore ninth out of the 20 coun­tries sur­veyed in the Asia-Pa­cific re­gion and 14th glob­ally.

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

Asia-Pa­cific coun­tries oc­cu­pied eight of the top 10 spots in the global rank­ings, led by In­dia in sec­ond place with a real wage growth of 4.9 per cent.

All lo­ca­tions in the re­gion ex­pect to re­ceive above-in­fla­tion salary in­creases.

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

Work­ers in Malaysia, which was ranked at 20, have en­joyed wage in­creases above 5 per cent for sev­eral years thanks to low un­em­ploy­ment and a strong econ­omy.

They can ex­pect in­creases to con­tinue next year with in­fla­tion fore­cast to fall back slightly, the sur­vey found.

China ranked fifth glob­ally, with wage earn­ers pre­dicted to have 6 per cent pay in­cre­ments — higher than the 5.5 per cent av­er­age this year — while Hong Kongers are tipped to see hikes of 1.8 per cent next year.

RISE

But Aus­tralians can ex­pect real wages to rise by only 0.8 per cent, the sur­vey found.

In Europe, ex­pected salary in­creases re­main low.

Real wage growth in Ger­many is ex­pected to be 1.2 per cent, French work­ers may see rises of 0.9 per cent while Bri­tain will likely get the low­est rate of real wage growth in the re­gion at 0.2 per cent.

The sur­vey by ECA, a provider of data, spe­cial­ist soft­ware, con­sul­tancy and train­ing, is based on in­for­ma­tion col­lected from 260 multi­na­tional com­pa­nies across 72 coun­tries.

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