Thailand is among the top five economies in the world to see real salary increases as productivity grows, according to a report by ECA International.
The country is likely to see a real salary increase of 4.1% in 2020, up from 3.9% in 2019.
The average real salary increase in Singapore is forecast at 3% in 2020, down from 3.3% in 2019, which is above average in Asia-Pacific and more than double Hong Kong's rise of 1.4%. India will again see the highest real salary increase in Asia, predicted to be 5.4%.
Vietnam leads Southeast Asia in terms of salary growth with a 5.1% increase expected in 2020.
The average increase in real terms in Asia-Pacific is forecast at 3.2%. India took the top spot, followed by Vietnam, Indonesia, Cambodia, then Thailand.
"Workers in Vietnam and Thailand will both see further increases to their salaries as the nominal salaries expected to be given by employers stay well ahead of the low levels of inflation that these countries will see in 2020," said Lee Quane, regional director of Asia at ECA International. "This has been a long-term trend for both countries, as productivity continues to grow and inflation is controlled."
Asian nations lead the way again for salary increases with 13 out of the top 20 hikes in real salaries and the entire top five in the global rankings.
"Once again, the vast majority of the highest real salary increases in the world are predicted to be seen in Asia," Mr Quane said. "The average real salary increase in Asia-Pacific is forecast to be 3.2%, which is significantly higher than the global average of 1.4% and nearly three times the European average of 1.1%.
"This is a trend we have seen for many years now, due to low inflation and rising productivity in many Asian economies, resulting in the rapid growth of salaries compared to other regions."
In China, the real salary increase is again expected to be above the regional and global average at 3.6%.
"Although there are signs that the Chinese economy may be slowing down in the face of the ongoing trade war with the US, wages and salary increases are still holding firm," Mr Quane said. "China has also maintained its place in the global top 10 for salary increases."
Not all in emerging Asia will benefit from an above-average salary rise after inflation. Workers in Malaysia are expected to see a big drop in their real salary increases compared with previous years, to 2.9% from 4% in 2019.
"Despite the forecast nominal salary increase staying at 5%, inflation in Malaysia is expected to rise from 1% to 2.1%, which will reduce the rate at which salaries increase in real terms for workers in the country," Mr Quane said. "Although it is still relatively high, the predicted lower real salary rise for workers compared to 2019 has seen Malaysia drop out of the global and Asia-Pacific top 10."
