Aon Projects Southeast Asia Salary Increases to Remain Stable at 5.2% in 2027
- Written by Telegraph Magazine
SINGAPORE – Media OutReach Newswire – 23 September 2026 – Aon plc (NYSE: AON), a leading global professional services firm, projects that organisations across Southeast Asia are budgeting for salary increases of 5.2% in 2027, up from 5% in 2026 according to findings from its 2026 Salary Increase and Turnover Study for Southeast Asia.
Overall, Indonesia and Vietnam are expected to record the highest salary increases in the region at 5.5% and 6.7% respectively. At the industry level, projected salary increases vary across markets reflecting differing economic conditions, labour market dynamics and sector-specific demand across the region. The retail and hospitality industry is expected to have the highest increase in Singapore at 4.8%, while the life sciences and medical devices industry leads in Malaysia at 5.2%, Thailand, at 5.3% and Vietnam at 7.7%. The consulting, business and community services industry leads in the Philippines at 6.7%.
"Boardrooms face important decisions on how to allocate investment in technology and talent while navigating an uncertain environment fraught with emerging and interconnected risks," said Rahul Chawla, Partner and Head of Talent Solutions, Southeast Asia, Aon. "Persistent inflation and ongoing skill shortages are directing investments toward the roles and skills that will drive returns on their broader business investments. While competitive pay remains important, organisations must also consider the broader employee value proposition including growth opportunities, purpose and career development to create opportunities for long-term organisational growth."
| Country | Salary Increase in 2025 (%) | Salary Increase in 2026 (%) | Projected (Budgeted) Salary Increase in 2027 (%) | Attrition in 2024 (%) | Attrition in 2025 (%) | Attrition in 2026 (%) |
| Southeast Asia | 5.4 | 5.0 | 5.2 | 17.4 | 17.5 | 16.6 |
| Indonesia | 5.7 | 5.4 | 5.5 | 20.8 | 15.0 | 15.5 |
| Malaysia | 4.8 | 4.6 | 4.8 | 15.9 | 18.2 | 17.4 |
| Philippines | 5.3 | 5.0 | 5.3 | 19.1 | 20.0 | 17.3 |
| Singapore | 4.3 | 4.1 | 4.1 | 16.7 | 19.3 | 16.8 |
| Thailand | 4.6 | 4.5 | 4.6 | 16.6 | 17.2 | 16.4 |
| Vietnam | 7.7 | 6.6 | 6.7 | 15.5 | 15.0 | 16.2 |
Despite continued investment in talent, employee turnover remains a challenge across the region.
Attrition rates across all countries in the region were in double digits. Malaysia has the highest turnover rate at 17.4%, followed by the Philippines at 17.3% and Singapore at 16.8%. Attrition rates also vary by industry, with the consulting, business and community services industry having the highest attrition rate at 21.5%, followed by manufacturing at 17.9% and financial services at 17.7%.
Findings from Aon's 2026 Southeast Asia Talent Pulse Survey show that organisations are reallocating talent towards strategic business priorities. For companies with expansion plans, headcount growth is selective, with a focus on front-office roles (50%, including sales and revenue-generating roles) and engineering and technology roles (35%), while reductions will be targeted mainly at back-office operations roles among organisations with headcount contraction plans. The most in-demand roles are data and AI roles, at 64%, followed by front-office roles, at 56%, cybersecurity roles, at 44%, software and cloud roles, at 43%, including positions such as software and cloud engineers and project and programme management roles, at 41%.
"Workforce decisions have never been more complex, making access to reliable and defensible data essential for organisations," said Belinda Armenta, Head of Talent Data Solutions, Asia Pacific, Aon. "With AI accelerating change across industries, organisations are seeking deeper intelligence beyond historical benchmarks. Insights into compensation trends, workforce movements and talent risks enable leaders to make more informed decisions, helping them attract, retain and plan for the talent they need."
Aon conducted its 2026 Salary Increase and Turnover Study for Southeast Asia from July to September 2026, analysing the salary increase budgets and employee turnover rates among more than 1,200 businesses across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
More information about Aon in Asia can be found here.
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