SINGAPORE - Workers here will see their salaries increase by an average of 4.5 per cent next year, the third lowest pay rise in the region after Taiwan and Japan, due to higher inflation.

The figure comes from the latest Salary Trends survey by human resource firm ECA International.

The 4.5 per cent average increase is in line with the kind of increment emloyees can expect this year, but with inflation predicted to be higher next year, their real wage uplifts will be lower, ECA said.

"Although pay rises in Singapore are forecast to be at the same level next year, inflation is anticipated to be significantly higher," said ECA's regional director for Asia, Mr Lee Quane.

"After inflation, real wage increases will average 2 per cent in Singapore next year - down from last year's 3.1 per cent rise in real terms."

On average, salaries in the region are expected to increase by 7.2 per cent next year. Factoring in inflation, real wage rises in Asia will average 2.7 per cent, higher than the other regions surveyed.

This year, ECA's Salary Trends survey was based on information collected from 340 multinational companies across 66 countries and regions. More than 140 companies provided data on their Singapore-based staff.