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There is a widening disparity in pay across job levels, particularly between the middle-management and the CEO, in the Asia Pacific region, says a new survey by Towers Watson, a professional services company.
Comparing India with China, the survey says that at the 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, said the survey. 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,” Muhiudeen said. At the lower end of the job spectrum, developed economies in the region have the highest pay levels, it said. Entry pay level in Australia is eight to 11 times more than China, the Philippines and Indonesia, and 15 times that of Vietnam.
Australia also pays higher than Japan, Singapore and Hong Kong through to middle management, after which the gap narrows.
Singapore stand outsThe Asia Pacific section of 2013/2014 Global 50 Remuneration Planning Report added that Singapore is the standout as pay levels in the country at senior management outstrip those of Japan and Hong Kong.
Remuneration levels in Singapore exceed those of Hong Kong – by 14 per cent at senior executive level to 34 per cent for top management.
Pay levels in China, however, lags 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 survey.
Pay for senior management has risen in China over the past few years because of a shortage of talent at this management level.
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