SINGAPORE - Higher inflation is likely to trim average real pay increase in Singapore to 2.6 per cent in 2019, down from 2.9 per cent this year, according to a survey conducted by ECA International.
The global provider of information, software and expertise for the management and assignment of employees said that inflation in Singapore is tipped to rise from one per cent in 2018 to 1.4 per cent in 2019.
While the projected pay rise in Singapore is bit a lower than the Asia-Pacific average increase of 2.7 per cent, ECA said that it will still continue to be higher than those in Hong Kong and Japan.
Singapore is near the middle of the salary hike table in the Asia-Pacific region, ranking 11th among 20 markets which ECA covers in its annual Salary Trends Survey.
India tops the ranking with a projected pay increase of 5.1 per cent - more than twice the rise in Hong Kong. Vietnam is in second place and Indonesia third in the ranking.
In greater China, ECA said, mainland China "will lead the way with real salaries increasing at the fastest rate in 2019, followed by Taiwan, Hong Kong and Macau".
Meanwhile, Mercer in its Asia-Pacific salary forecast tips overall pay in Singapore to rise 3.8 per cent in real terms, with the life science and technology (4 per cent) sectors projected to see the biggest jump in salary.
Pay in most sectors in Singapore is expected to increase except for real estate, banking and lifestyle retail sectors, according to the professional services firm.