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[h=2]Real salary increase in S’pore among lowest globally next
year[/h]
November 11th, 2012 |
Author: Contributions
Companies in Singapore are forecasting a 4.5% salary
increase in 2013 – the same increase to have been awarded this year and lower
than the regional average, according to ECA International, the world’s leader in
international assignee management. This is the first time since 2009 that the
rate of salary increase in Singapore has not been higher than the previous
year.
“The fact that proposed salary increases in 2013 mirror those awarded in 2012
reflects the uncertainty many companies have as to which way their financial
performance will go next year,” says Lee Quane, Regional Director, Asia, for ECA
International. “However, while there is apprehension about the future, most
companies in Singapore remain less cautious now than in 2009 in the aftermath of
the global financial crisis when they were granting increases of just 2%.”
According to IMF forecasts, inflation in Singapore in 2013 is anticipated to
be 4.3%, so in real terms the 4.5% wage increase will only just offset the
inflationary impact. Once this inflation is taken into account,
Singapore employees can anticipate the lowest real salary increase in the region
and some of the lowest globally. This continues the pattern already seen this
year whereby employees in Singapore have, on average, experienced no increase in
real terms.
“This contrasts dramatically with other developed economies in the region,”
explains Quane. “For example, while the nominal salary increase in Australia, of
4%, is lower than those awarded in Singapore this year, a lower rate of
inflation means that employees Down Under have, on average, experienced a 2%
increase to their income in real terms.”
On average, salary increases for the Asia Pacific region are forecast to be
6.2% – the same levels as seen this year. This average figure is higher than
forecasts for for Europe (3.3%) and North America (3%).but lower than Latin
America (12.2%).
ECA conducts its Salary Trends Survey annually. This year’s survey monitored
actual salary increases for 2012 and predicted salary increases for 2013 in 65
markets. In Singapore, 140 companies were surveyed. The survey is used by
international companies to monitor and benchmark company salary increases in
local markets around the world.
Situation compared with Hong Kong
As in Singapore, companies in Hong Kong are awarding a salary increase of
4.5% in 2012 and forecasting the same rate of increase for 2013. However, with
inflation in Hong Kong predicted to be 3% next year, employees there will feel
better off in real terms than their counterparts in Singapore.
“While the situation regarding the real increase in salary looks more
positive in Hong Kong than Singapore, the fact that the rate of nominal increase
of 4.5% for 2013 remains the same as this year shows that, as in Singapore, most
companies remain uncertain about the economy in the short-term.” says Quane.
Regional highs and lows
The largest salary increase in the region – and the third largest in the
survey – is expected to be seen in Vietnam. Companies there are forecasting a
12% salary hike. Vietnam is followed by India where an 11.2% increment has been
predicted for 2013.
Once again, it is employees in Japan who can anticipate the region’s lowest
increase of 2%.
However, once inflation is factored in, it is Singapore employees who will
see the lowest increase in real terms (0.2%), according to forecasts, while
deflation in Japan means that employees there could see salaries increase by
2.2% in real terms. Vietnam remains in top position even after inflation
predictions for 2013 are taken into account. Workers there can anticipate an
increase of 5.8% in real terms.
In China, companies are predicting an 8.5% increase on average for next year.
With inflation there forecast to be at the same level as in Hong Kong, the
increase in real terms will be higher at 5.5%.
“Although companies in China are increasingly paying high salaries to attract
the skills they require to support their growth, their employees still receive
lower base salaries than their Singapore and Hong Kong counterparts,” says
Quane. “However, the fact that these Chinese employees will be experiencing
significantly higher wage increases does mean that the salary gap between these
locations is continuing to narrow.”
Rates of increase will also vary within China. For instance, employees in
Beijing and Shanghai will experience a wage hike of about 8%, which will be
slightly lower than their counterparts in other Tier 1 cities such as Guangzhou
(9%) and Shenzhen (8.3%).
Global highlights
The ongoing economic uncertainties in Europe and lingering worries about the
US will impact wage increases globally. In the vast majority of countries
surveyed, salary increases predicted for next year are the same or lower than
last year. Globally, it is anticipated that salaries will go up by 5.5% – almost
the same as this year’s 5.6% average. With global inflation for 2013 forecast at
3.7% salary increases in real terms will be 1.9% on average – the same as this
year’s figures.
Latin America will lead the world in terms of average salary increase in
2013. Employees there can expect an increase of 12.2% on average next year,
although this is lower than the 12.7% increments awarded this year. The largest
wage hikes are being forecast in Venezuela. Companies there are predicting
salaries to increase by 28.1%. However, the impact of this will be completely
eroded by inflation if this reaches the 28.9% forecast. At 23.5%, Argentina is
predicted to have the second highest average salary increase next year. However,
in real terms increases are likely to be much lower: while official inflation
forecasts for Argentina next year stand at 9.7%, most independent analysts put
inflation there at over 20%.
Salaries in Western Europe will go up by 2.8% – a little more than half of
the 4.3% wage increase that employees in Eastern Europe can expect in 2013.
Russian employees can expect the region’s largest increases, while Greek and
Swiss employees, like their Japanese counterparts, are likely to see the lowest
increases of all the countries surveyed. In real terms, Spanish workers should
expect the lowest real wage increases next year of just 0.1%.
Elsewhere, employees in both the United States and Canada can expect a 3%
wage increase. In the Middle East, companies are forecasting a salary increase
of 5.2% on average in 2013.
(Nominal) Salary increase forecast rankings for Asia Pacific
<thead>
</thead>
<tbody>
</tbody>
Real wage increase forecast rankings for Asia Pacific
<thead>
</thead>
<tbody>
</tbody>
.
[Source]: http://www.eca-international.com/ne...ncrease_again_for_Singapore_employees_in_2013
.
Rate this (9 Votes)
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year[/h]
increase in 2013 – the same increase to have been awarded this year and lower
than the regional average, according to ECA International, the world’s leader in
international assignee management. This is the first time since 2009 that the
rate of salary increase in Singapore has not been higher than the previous
year.
“The fact that proposed salary increases in 2013 mirror those awarded in 2012
reflects the uncertainty many companies have as to which way their financial
performance will go next year,” says Lee Quane, Regional Director, Asia, for ECA
International. “However, while there is apprehension about the future, most
companies in Singapore remain less cautious now than in 2009 in the aftermath of
the global financial crisis when they were granting increases of just 2%.”
According to IMF forecasts, inflation in Singapore in 2013 is anticipated to
be 4.3%, so in real terms the 4.5% wage increase will only just offset the
inflationary impact. Once this inflation is taken into account,
Singapore employees can anticipate the lowest real salary increase in the region
and some of the lowest globally. This continues the pattern already seen this
year whereby employees in Singapore have, on average, experienced no increase in
real terms.
“This contrasts dramatically with other developed economies in the region,”
explains Quane. “For example, while the nominal salary increase in Australia, of
4%, is lower than those awarded in Singapore this year, a lower rate of
inflation means that employees Down Under have, on average, experienced a 2%
increase to their income in real terms.”
On average, salary increases for the Asia Pacific region are forecast to be
6.2% – the same levels as seen this year. This average figure is higher than
forecasts for for Europe (3.3%) and North America (3%).but lower than Latin
America (12.2%).
ECA conducts its Salary Trends Survey annually. This year’s survey monitored
actual salary increases for 2012 and predicted salary increases for 2013 in 65
markets. In Singapore, 140 companies were surveyed. The survey is used by
international companies to monitor and benchmark company salary increases in
local markets around the world.
Situation compared with Hong Kong
As in Singapore, companies in Hong Kong are awarding a salary increase of
4.5% in 2012 and forecasting the same rate of increase for 2013. However, with
inflation in Hong Kong predicted to be 3% next year, employees there will feel
better off in real terms than their counterparts in Singapore.
“While the situation regarding the real increase in salary looks more
positive in Hong Kong than Singapore, the fact that the rate of nominal increase
of 4.5% for 2013 remains the same as this year shows that, as in Singapore, most
companies remain uncertain about the economy in the short-term.” says Quane.
Regional highs and lows
The largest salary increase in the region – and the third largest in the
survey – is expected to be seen in Vietnam. Companies there are forecasting a
12% salary hike. Vietnam is followed by India where an 11.2% increment has been
predicted for 2013.
Once again, it is employees in Japan who can anticipate the region’s lowest
increase of 2%.
However, once inflation is factored in, it is Singapore employees who will
see the lowest increase in real terms (0.2%), according to forecasts, while
deflation in Japan means that employees there could see salaries increase by
2.2% in real terms. Vietnam remains in top position even after inflation
predictions for 2013 are taken into account. Workers there can anticipate an
increase of 5.8% in real terms.
In China, companies are predicting an 8.5% increase on average for next year.
With inflation there forecast to be at the same level as in Hong Kong, the
increase in real terms will be higher at 5.5%.
“Although companies in China are increasingly paying high salaries to attract
the skills they require to support their growth, their employees still receive
lower base salaries than their Singapore and Hong Kong counterparts,” says
Quane. “However, the fact that these Chinese employees will be experiencing
significantly higher wage increases does mean that the salary gap between these
locations is continuing to narrow.”
Rates of increase will also vary within China. For instance, employees in
Beijing and Shanghai will experience a wage hike of about 8%, which will be
slightly lower than their counterparts in other Tier 1 cities such as Guangzhou
(9%) and Shenzhen (8.3%).
Global highlights
The ongoing economic uncertainties in Europe and lingering worries about the
US will impact wage increases globally. In the vast majority of countries
surveyed, salary increases predicted for next year are the same or lower than
last year. Globally, it is anticipated that salaries will go up by 5.5% – almost
the same as this year’s 5.6% average. With global inflation for 2013 forecast at
3.7% salary increases in real terms will be 1.9% on average – the same as this
year’s figures.
Latin America will lead the world in terms of average salary increase in
2013. Employees there can expect an increase of 12.2% on average next year,
although this is lower than the 12.7% increments awarded this year. The largest
wage hikes are being forecast in Venezuela. Companies there are predicting
salaries to increase by 28.1%. However, the impact of this will be completely
eroded by inflation if this reaches the 28.9% forecast. At 23.5%, Argentina is
predicted to have the second highest average salary increase next year. However,
in real terms increases are likely to be much lower: while official inflation
forecasts for Argentina next year stand at 9.7%, most independent analysts put
inflation there at over 20%.
Salaries in Western Europe will go up by 2.8% – a little more than half of
the 4.3% wage increase that employees in Eastern Europe can expect in 2013.
Russian employees can expect the region’s largest increases, while Greek and
Swiss employees, like their Japanese counterparts, are likely to see the lowest
increases of all the countries surveyed. In real terms, Spanish workers should
expect the lowest real wage increases next year of just 0.1%.
Elsewhere, employees in both the United States and Canada can expect a 3%
wage increase. In the Middle East, companies are forecasting a salary increase
of 5.2% on average in 2013.
(Nominal) Salary increase forecast rankings for Asia Pacific
| Asia Pacific Rank 2013 | Country | Global rank 2013 |
|---|---|---|
1 | Vietnam | 3 |
2 | India | 4 |
3 | Indonesia | 7 |
4 | China | 10 |
5 | Philippines | 13 |
6 | Thailand | 15 |
7 | Malaysia | 16 |
8 | Korea Republic | 18 |
9 | Singapore | 28 |
9 | Hong Kong | 28 |
11 | Taiwan | 30 |
11 | Australia | 30 |
13 | New Zealand | 38 |
14 | Japan | 58 |
<thead>
</thead>
<tbody>
</tbody>
Real wage increase forecast rankings for Asia Pacific
| Asia Pacific Rank 2013 | Country | Global rank 2013 |
|---|---|---|
1 | Vietnam | 2 |
2 | China | 3 |
3 | Indonesia | 4 |
4 | Malaysia | 5 |
5 | Korea Republic | 9 |
6 | Philippines | 11 |
7 | Thailand | 12 |
8 | Japan | 15 |
9 | Taiwan | 17 |
10 | India | 24 |
11 | Hong Kong | 27 |
12 | Australia | 32 |
13 | New Zealand | 51 |
14 | Singapore | 57 |
<thead>
</thead>
<tbody>
</tbody>
.
[Source]: http://www.eca-international.com/ne...ncrease_again_for_Singapore_employees_in_2013
.
Rate this (9 Votes)
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