If you’re looking for the Southeast Asian country with the highest salary growth right now, the answer is Vietnam. In 2025, salary increases in Vietnam reached 7.7 percent, the highest in the region. Looking ahead to 2026, Vietnam is still projected to lead with an increase of 7.1 percent.
These figures are well above the regional average, which is estimated at 5.3 percent.
The data comes from the 2025 Salary Increase and Turnover Study for Southeast Asia, published by Aon plc (NYSE: AON). The survey covered more than 700 companies across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam during July–September 2025.
Average Salary Increase in Southeast Asia
| Country / Region | Salary Increase 2024 | Salary Increase 2025 | 2026 Projection | Attrition 2023 | Attrition 2024 | Attrition 2025 |
|---|---|---|---|---|---|---|
| Overall SEA | 5.1% | 5.4% | 5.3% | 15.5% | 17.4% | 17.5% |
| Indonesia | 5.7% | 5.7% | 5.9% | 15.1% | 20.8% | 15.0% |
| Malaysia | 4.9% | 4.8% | 4.8% | 16.2% | 15.9% | 18.2% |
| Philippines | 5.4% | 5.3% | 5.2% | 17.5% | 19.1% | 20.0% |
| Singapore | 4.2% | 4.3% | 4.3% | 16.5% | 16.7% | 19.3% |
| Thailand | 4.4% | 4.6% | 4.7% | 14.0% | 16.6% | 17.2% |
| Vietnam | 6.4% | 7.7% | 7.1% | 13.8% | 15.5% | 15.0% |
Overall, regional salary growth has remained relatively stable over the past three years. However, Vietnam has consistently outperformed the regional average, driven primarily by the technology sector, which is projected to see a 7.1 percent salary increase in 2026.
Indonesia is also seeing strong momentum from the technology sector (5.9 percent), while Singapore is supported by the life sciences and medical devices industries (4.6 percent). Meanwhile, Malaysia’s growth is led by consulting, business, and community services (4.8 percent).
Retention Becomes the Real Battle
However, aggressive salary increases are occurring alongside growing employee retention challenges. In 2025, the Philippines and Singapore are projected to record the highest attrition rates, at 20.0 percent and 19.3 percent respectively, followed by Malaysia at 18.2 percent.
By industry, consulting, business, and community services show the highest turnover rate at 22.6 percent, followed by retail at 21.6 percent and manufacturing at 17.5 percent.
Rahul Chawla, Partner and Head of Talent Solutions for Southeast Asia at Aon, emphasized that companies today are facing two major priorities: retaining top talent while maintaining cost flexibility.
“As capital deployment in technology and strategic investments accelerates across Southeast Asia, organisations are increasingly focused on retaining top talent and highly skilled employees.”
According to him, pressure on compensation costs is unavoidable, yet companies must remain agile:
“Balancing rising compensation costs with the need for agility is key. The most successful firms are leveraging real-time market data and total rewards strategies to stay ahead.”
This means that pay strategies are no longer driven solely by inflation adjustments or annual benchmarks. Instead, companies are increasingly relying on real-time market data and total rewards approaches to ensure key talent does not move to competitors.
With strong demand for roles in sales, information technology, AI/ML, cybersecurity, and engineering—and 63 percent of companies acknowledging skills gaps—competition for talent in Southeast Asia is expected to remain intense.
And based on current salary growth figures, Vietnam has emerged as the epicenter of compensation growth in the region.
