ASIA PACIFIC: Emerging markets in Asia Pacific are expecting higher salaries in 2022, with a projected increase of 5.3% for professionals throughout the region.
Willis Towers Watson’s latest Salary Budget Planning Report shows that Asia-Pacific companies are projecting an average salary increase of 5.3% for executives, management, professional employees, and support staff in 2021.
Some fast-growing markets have even bigger pay rises in store, with India and Vietnam projecting increases of 8.8% and 7.4% respectively.
Likewise, developed markets are projecting lower salary increases in 2022, with Singapore expecting wages to grow by 3.7% only.
Willis Towers Watson's Business Leader for Rewards Data and Software, Edward Hsu, suggests that there are several reasons for the increase in salary rates across Asia Pacific.
The region is expected to see better trade growth than the rest of the world. Higher trade growth directly affects a region’s manufacturing output, foreign direct investment, and demand for technology. Demand for technology, in particular, has significantly increased as a result of remote working during the Covid-19 pandemic, which has driven up salaries in this sector.
According to the Flexera 2021 State of the Cloud Report, 90% of organizations surveyed expected the use of cloud-computing technology to exceed prior plans as a result of the pandemic. At the same time, digital skills in applicants also rose with many Asia Pacific firms training their existing staff or hiring new talent with digital skills.
Another reason for the salary increase in the Asia Pacific region is that many companies are no longer implementing pay freezes during the pandemic. A large contingent - 30%according to Willis Towers Watson - of employers canceled salary reviews in 2020. This figure dropped to 13% this year and is projected to continue its fall to just 2.5% in 2022.