Disparity in pay across job levels in Asia-Pacific: Survey

There is a widening disparity in pay across job levels, particularly between the middle management and CEO in the Asia-Pacific region, a new survey has found.

At the lower end of the job level, developed economies in the region have the highest pay levels, according to a survey by professional services company Towers Watson.

For instance, in Australia entry pay level is eight to 11 times more than in China, the Philippines and Indonesia, and 15 times that of Vietnam. Australia also pays discernibly higher than Japan, Singapore and Hong Kong through to middle management, after which the gap narrows.

The Asia-Pacific section of 2013/2014 Global 50 Remuneration Planning Report added that Singapore is the standout as pay levels in the country for the senior management outstrips those of Japan and Hong Kong.  Remuneration levels in Singapore exceed those of Hong Kong – by 14 per cent at the senior executive level to 34 per cent for top management.  

Pay levels in China, however, lag that of Hong Kong across most of the job categories, but at senior management level – there is convergence. At top management, remuneration is 11 per cent more in China ($215,000) than in Hong Kong ($193,000), according to the Towers Watson report. Pay for senior management has risen in China over the past few years because of a shortage of talent at this management level.

Comparison between China and India shows striking differences between the region’s two biggest labour forces. Based on the findings, labour costs for senior executives and top management is lower in India. At senior level, executive pay in China is more than twice that in India ($94,000).

For international companies, the sharp fall in the value of the rupee against the dollar in 2013 contributed to reducing labour costs in India, it added. It contrasts with China where the renminbi appreciated against the dollar.

“The large influx of Indian returnees following the global financial crisis helped India to get more CEO talent,” said Clare Muhiudeen, Managing Director, Talent & Rewards, Asia Pacific at Towers Watson. “But with higher rates of inflation in India than in China, that gap will narrow. We expect average salary increases in India to be higher than China’s 8.5 per cent. That said, India clearly has more affordable labour than China and that’s the way it’ll be for the foreseeable future.”

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