If you are working in Singapore, expect a real wage increase of approx. 2.9 per cent in your salary in 2017. As per the latest salary trends survey by ECA International, next year people working in Singapore will receive an increment of 2.9 per cent in their salaries above inflation on average.
Lee Quane, Regional Director - Asia, ECA International, says, “The open, trade-dominated economy of Singapore is withstanding the deceleration of growth in China reasonably well, but is nevertheless experiencing a slowdown itself.”
ECA International release stated, Despite offering 4 per cent nominal salary increases in both 2016 and 2017, rising inflation means that staff in Singapore will see a decline in real wage increases next year. With Singapore transitioning from 0.3 per cent deflation in 2016 to 1.1 per cent inflation in 2017, real wage increases for employees will take a hit. The generous 4.3 per cent average real wage increases enjoyed in 2016 will not be seen in 2017. Instead, real wage increases are forecast at 2.9 per cent.
“China's downturn is reducing demand and trade throughout the region and this is having an impact on locations such as Singapore, with rising inflation forecast next year. However, Singapore continues to sit above the average wage increases seen in the Asia Pacific region, forecast to be 2.6 per cent for 2017,” adds Lee Quane.
The survey reveals that Asia Pacific will see an increase of 2.6 per cent in 2017 higher than all the other regions. Vietnam to witness highest real wage increase in Asia Pacific.
Singapore is slightly in a better position than Hong Kong as, people in Hong Kong will see their salaries increase by an average of 4 per cent again in 2017. After factoring in inflation, predicted to be 2.6 per cent in 2017, employees will experience the third lowest wage increase in Asia Pacific, estimated to be a 1.4 per cent wage increase in real terms.