According to the latest Salary Trends Report by ECA International (ECA), real wages in APAC, which are equal to nominal wage growth minus the rate of inflation, once again outperformed the rest of the world in 2023.
In Thailand, salaries increased by 3.5% in 2023 in real terms and are expected to grow further by 3.4% in real terms in 2024.
ECA International is the world’s leading provider of information, software and expertise for the management and assignment of employees around the world. The annual Salary Trends report analyses current and projected salary increases in more than 70 locations across the world.
“Thailand was one of the few locations in Southeast Asia where inflation went above median salary increases in 2022, meaning employees saw salary decreases in real terms.
However, we are seeing returns to positive salary growth this year and with lower inflation projected for next year, real salary increases should continue next year,” explained Mark Harrison, General Manager, of Asia for ECA International.
The average forecast rate of increase in real terms in the region for 2024 is 2.2%, more than double the global average of 1%. Most surveyed locations in the APAC region are likely to maintain or exceed their 2023 real salary growth rates in 2024, with the exceptions being Sri Lanka and New Zealand.
Rates of salary growth across ASEAN countries vary. In Malaysia, salaries increased by 2.1% in 2023 in real terms and are expected to grow further by 2.3% in real terms in 2024. Vietnam led the way in ASEAN in 2023 with a salary growth of 3.6% in real terms, a rate which is forecast to be the same in 2024.
In Singapore, real wages fell by 1.5% in 2023 and are expected to rise once again in 2024, where workers will see a 0.5% increase in real wages.Source: The Nation
