Wage rises likely to exceed inflation: Report
Increment budgets may go up by 4.5%, more than expected 3.8% inflation rate
SALARY increases are likely to outstrip inflation this year so workers should be able to stay ahead of the rising cost of living, said a new report yesterday.
Consulting firm Towers Watson said company budgets for salary increments here are expected to go up by 4.5 per cent on average - a tad higher than the expected inflation rate of 3.8 per cent.
This means real wage growth is expected to stay positive this year.
The results - from an online survey in February and March - were gathered from about 1,600 responses from 18 economies across the Asia-Pacific region.
This is quite a reasonable increment, considering that inflation might still be at a level where companies feel they have to meet employee expectations to increase real salaries.
- Mr David Ang, executive director of the Singapore Human Resources Institute (SHRI), on how wages are expected to increase by an average of 4 per cent, based on a survey conducted by SHRI and Remuneration Data Specialists last December