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Bonuses are expected to increase while salary levels will remain relatively unchanged in 2014, according to a survey from HR Business Solutions. The poll was conducted from a pool of 1,700 employers across 19 Asia-Pacific markets.
The study predicts that the average bonus will rise to 16% of total pay in 2014, a marginal increase from 15% this year, as a result of the tight labour market and higher inflation.
Singapore had the second biggest bonus pay-outs among the 19 markets covered in the survey, with Bangladesh and Pakistan surpassing them with a bonus equating to 17% of total pay.
HR Business Solutions Managing Partner, Elaine Ng, commented: “Singapore’s labour market is very tight and inflation is set to rise… however, due to [the] economic slowdown and uncertain business outlook, companies are generally adopting a cautious approach to managing their costs to [safeguard] their bottom line.”
The study also revealed that pay in Singapore is expected to increase by +5% in 2014, at a similar level to 2013, and slightly higher than the +4.5% in 2012. Ms Ng expects that the highest pay rise of +6% will come from the financial sector, where there is an on-going skills shortage.
“Labour costs have been rising rapidly in recent years and far surpassing productivity. For Singapore, the appreciation of the Singapore dollar has made Singapore labour costs higher in US dollar terms in comparison to surrounding countries,” she added.
Salary increments remained static in other markets; such as China, Hong Kong, Malaysia, South Korea, and Vietnam. Only three markets saw slightly higher salary increases; Indonesia (+0.2%), New Zealand (+0.1%), and Taiwan (+0.1%). The biggest increases in pay were reported in low-income market; such as Bangladesh, India, Indonesia, Pakistan, and Vietnam, ranging between +10% and +13.3%.