SINGAPORE - Aon projects an overall 5.2% salary increase budget for 2027 across six Southeast Asian markets, compared with an actual salary increase of 5.0% in 2026.

The projection comes from Aon’s 2026 Salary Increase and Turnover Study, conducted from July to September among more than 1,200 organisations in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Vietnam has the highest projected salary increase budget for 2027 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% and Singapore at 4.1%.

The 2027 figures are employer planning benchmarks rather than guaranteed pay increases for individual workers. Aon’s previous regional study had projected a 5.3% salary increase budget for 2026, while the latest study records the actual 2026 salary increase at 5.0%.

Regional attrition fell to 16.6% from 17.5% a year earlier. Aon measures turnover over a defined trailing 12-month period.

Malaysia records the highest attrition rate at 17.4%, followed by the Philippines at 17.3% and Singapore at 16.8%. Thailand stands at 16.4%, Vietnam at 16.2% and Indonesia at 15.5%.

A separate Aon Talent Pulse survey points to continued demand for selected skills. Among employers planning expansion, 50% identified front-office roles as a headcount priority and 35% cited engineering and technology.

Data and AI roles were the most frequently identified in-demand jobs at 64%, followed by front-office roles at 56% and cybersecurity at 44%.

Rahul Chawla, Aon’s partner and head of Talent Solutions for Southeast Asia, said employers were directing spending toward priority skills as labour-market pressures persisted.

“Persistent inflation and ongoing skill shortages are directing investments toward the roles and skills that will drive returns on their broader business investments.”