Growth in pay rises to ease in Asia, consultancy says
Asia will see highest real wage growth, though increases have slowed from previous year, forecast issued by the Hay Group division of Korn Ferry.
In Asia, salaries are forecast to increase by 5.4 per cent – down from 6.1 per cent last year. Inflation-adjusted real wage increases are expected to be 2.8 per cent – the highest globally, but down from 4.3 per cent last year. China remained consistent with real wage increases predicted at 4.2 per cent for 2018, compared to 4 per cent last year. Most countries in this region saw a drop in year-over-year real wage prediction increases – including Vietnam's forecast of 4.6 per cent, down from 7.2 per cent, Singapore at 2.3 per cent, down from 4.7 per cent, Japan at 1.6 per cent, down from 2.1 per cent and Thailand at 4.5 per cent, down from 5.6 per cent.
Adjusted for inflation, employees around the world are expected to see real wage increases of only an average of 1.5 per cent, down from 2017's prediction of 2.3 per cent and 2016's prediction of 2.5 per cent.
“With inflation rising in most parts of the world, we're seeing a cut in real wage increases across the globe,” said Bob Wesselkamper, Korn Ferry global head of rewards and benefits solutions. "The percentage of salary increase or decrease will vary by role, industry, country and region, but one thing is clear, on average, employees are not seeing the same real pay growth they did even one year ago."
