Southeast Asia Salaries Set for 5.2% Rise
Employees across Southeast Asia could see salary growth remain steady in 2027, with Aon projecting an average 5.2% increase. Vietnam is expected to lead the region, while demand for AI, data and technology talent continues to shape employers’ pay and hiring priorities.
What will pay growth look like for employees across Southeast Asia in 2027?
For many, the answer is steady rather than dramatic.
Aon projects that organisations across Southeast Asia will budget for average salary increases of 5.2% in 2027, slightly above the 5% recorded in 2026. The findings come from its 2026 Salary Increase and Turnover Study, covering more than 1,200 businesses across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
But the regional average tells only part of the story.
Vietnam Leads Salary Growth
Vietnam is expected to record the strongest salary increase at 6.7%, followed by Indonesia at 5.5% and the Philippines at 5.3%.
Malaysia is projected at 4.8%, Thailand at 4.6%, while Singapore is expected to remain at 4.1%.
Market | Projected 2027 Salary Increase |
Vietnam | 6.7% |
Indonesia | 5.5% |
Philippines | 5.3% |
Malaysia | 4.8% |
Thailand | 4.6% |
Singapore | 4.1% |
Southeast Asia | 5.2% |
Pay expectations also differ significantly between industries. Life sciences and medical devices are expected to lead salary increases in Vietnam at 7.7%, Thailand at 5.3% and Malaysia at 5.2%. Singapore’s retail and hospitality sector is projected to lead at 4.8%, while consulting, business and community services tops the Philippines at 6.7%.
AI Skills Move Up the Hiring Agenda
Perhaps more revealing for employees is where employers plan to invest their talent budgets.
Among companies planning expansion, 50% are prioritising front-office positions, including sales and other revenue-generating roles, while 35% are focusing on engineering and technology positions.
Data and AI roles are the most in-demand, cited by 64% of organisations, followed by front-office roles at 56%, cybersecurity at 44%, software and cloud positions at 43%, and project and programme management roles at 41%.
That suggests employees looking ahead to 2027 may need to think beyond the annual salary increase. Skills connected to AI, data, cybersecurity and technology are becoming increasingly important as companies decide where to direct workforce investment.
Pay Is Only Part of the Employee Equation
Aon’s findings also show why employers cannot rely on salary increases alone to retain people.
Employee attrition remained in double digits across every market studied. Malaysia recorded the highest turnover rate at 17.4%, followed by the Philippines at 17.3% and Singapore at 16.8%. Across Southeast Asia, attrition stood at 16.6%.
Rahul Chawla, Partner and Head of Talent Solutions, Southeast Asia at Aon, said competitive pay remains important, but organisations also need to consider the wider employee value proposition, including growth opportunities, purpose and career development.
That may be the bigger workplace message behind the 2027 salary numbers.
A 5.2% regional increase gives employees a useful benchmark, but the workplaces best positioned to attract and retain talent will likely be those that combine competitive compensation with opportunities to learn, develop and build skills for the changing world of work.
Sources: Aon; Aon 2026 Salary Increase and Turnover Study for Southeast Asia; Aon 2026 Southeast Asia Talent Pulse Survey
Comments