Lower salary increases expected during 2016, in 17 of 22 markets in Asia

Towers Watson released its latest Asia-Pacific salary budget planning report for 2016. The bi-annual survey involved more than 2,000 responses from 22 countries in the Asian region.

As per the findings, those working in the Singapore retail industry can expect a relatively bigger boost in their salary in 2016.

The expected pay raise for retail employees in Singapore is 4.5% (nominal terms) during 2016. The industry is forecasted to experience the biggest wage increase, as compared to all other sectors in Singapore.

Following up retail in the wage increase game are the tech and professional services industries, which expect a rise of 4.3% and 3.9% respectively.

Along with these industries, automotive, energy, chemical, financial services, natural resources, media, and pharmaceutical industry professionals were included in the survey. These industries expect an average increase of 4.4% in Singapore (6.8% for the Asian region).

However, the news is not positive for all parts of Asia. 17 of the 22 markets the survey covered are expected to receive a smaller pay raise in 2016 than they did in 2015.

For both the East and South-east Asian areas, the biggest raises are expected in Indonesia, Vietnam, and China, with an increase of 9.4, 10.4, and 8 percent respectively. These are all higher than the rate in 2015.

Dragging behind all other Asian countries is Japan. In the country, bosses are expected to only increase employee wages by 2.4%.

For Singapore, the Towers Watson report added that a large emphasis is placed on the individual performance of employees, before coming to a final decision about their wage increases. Excellent performers can expect a salary increase of 5.5%, above average performers 4.5% and those meeting the average will receive around 4%.

The salary data reflects Asian employer concerns over the economic outlook. Those with a positive outlook declined from 57% to 33%.

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