Aon Projected Southeast Asia Salary Increases for 2027
Organizations across the region are budgeting for a 5.2% average pay rise as inflation and skill shortages persist.
Updated on Sept. 23, 2026 in Remote Work
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Aon has released its 2026 Salary Increase and Turnover Study, projecting a 5.2% salary budget increase across Southeast Asia for 2027. This follows a 5.0% average increase reported for 2026 across the 1,200 businesses analyzed.
Why it matters
Persistent inflation and ongoing skill shortages are forcing organizations to reallocate talent toward front-office and engineering roles. These investment decisions reflect a broader strategy to retain employees amid competitive market pressures.
The study analyzed 1,200 businesses across six countries, revealing salary projections ranging from 5.5% in Indonesia to 6.7% in Vietnam. Meanwhile, attrition rates remain high, led by the consulting, business, and community services sector at 21.5%.
The players
Aon
Aon is a leading global professional services firm that provides risk, retirement, and health solutions.
The details
Companies are specifically prioritizing talent acquisition in engineering and front-office functions to address critical gaps. The data, collected between July and September 2026, also highlights significant turnover challenges, such as the 17.4% rate in Malaysia.
Timeline
July 2026 to September 2026 was the period when Aon conducted its study.
2026 saw regional salary increases reach an average of 5.0%.
2027 is the year for which organizations are budgeting 5.2% salary increases.
Market Landscape
This study underscores a shift toward strategic talent investment as companies compete for a dwindling supply of specialized labor. Organizations are moving away from blanket raises, instead focusing capital on high-growth engineering and front-office departments to secure market share.
Employees in Southeast Asia may see modest increases to their total compensation packages as companies prioritize retention in critical engineering and front-office roles. However, high attrition rates in sectors like consulting suggest that job security remains volatile for those outside of these high-demand functions.
The takeaway
Workers should identify which skill sets are currently in high demand within their respective industries to better leverage their career path. Employers are increasingly selective with budget allocations, focusing capital where it most directly drives front-office performance.
Further reading
For more on the current climate of workforce compensation, visit the Remote Work section.
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Do you feel your household salary growth is currently keeping up with rising prices?
