Aon plc projects salary increases across Southeast Asia for 2027
What happened
Aon plc released its 2026 Salary Increase and Turnover Study for Southeast Asia, projecting that organizations across the region will budget for salary increases of 5.2% in 2027, up from 5% in 2026. The study noted that persistent inflation and ongoing skill shortages are directing investments toward specific roles and skills.
From sina.com.hk
Why it matters
The projections indicate significant variation in labor costs across the region, with Indonesia and Vietnam expected to record the highest salary increases at 5.5% and 6.7% respectively. These figures reflect differing economic conditions and labor market dynamics in various sectors.
Aon plc is expanding its business operations into Indonesia within the broader Southeast Asia region.
From sina.com.hk
Who's involved
- Aon plcGlobal professional services firm that conducted the salary increase study.
- IndonesiaCountry projected to have one of the highest salary increases in the region (5.5%).
- SingaporeCountry projected to see a 4.8% salary increase in the retail and hospitality industry.
- MalaysiaCountry projected to see a 5.2% salary increase in the life sciences and medical devices industry.
- VietnamCountry projected to have the highest salary increase in the region (6.7%).
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- SingaporeSpeculative
Businesses in Singapore might face increased labor costs in the retail and hospitality industry due to the projected 4.8% salary increase.
- MalaysiaSpeculative
Companies in Malaysia might see rising operational costs in the life sciences and medical devices industry, with a projected 5.2% salary increase.
- VietnamSpeculative
Organizations in Vietnam could face higher hiring costs, as the country is projected to record a 6.7% salary increase.
Keep exploring
The entities involved
Related events
- Indonesian citizens are seeking employment opportunities in Malaysia amidst intensifying immigration operations against migrants.
- OJK enforced capital market reforms and supported national development in Indonesia on October 1, 2026.
- Market growth potential is being discussed, noting key home markets and liquidity flows through Singapore, involving entities like Maybank, Indonesia, and Malaysia.
- Indonesian exports are expanding into Japanese, Australian, and South Korean markets, while regional countries seek sharia financial hubs.