Indonesians May Soon See Pay Hikes Return to Pre-Pandemic Levels
(Bloomberg) -- Salary increases in Indonesia are on track to rebound to pre-pandemic levels next year as the economy recovers and employers beef up their workforce, a new survey showed.
Median pay hikes in Southeast Asia’s largest economy are forecast to hit 6.5% in 2022, well above the 5.3% registered this year, but still slightly under the 6.9% in 2019, according to a survey of 533 organizations conducted by human resources firm Mercer. Indonesia’s results also beat the Asia-Pacific average of 5.4%.
“Employment recovery is gathering pace with the reopening of economic and social activities, and the future for Indonesia’s job market looks bright,” said Yosef Budiman, Mercer career products manager in Jakarta. “Companies are in a better position to hire while employees have more options when they consider switching jobs in this climate.”
High-tech and Internet companies in Indonesia will offer the highest median salary increases in 2022 at 7.3% due to the high industry demand and stiff competition for skilled labor in the field, Mercer said. The chemical and life sciences sectors are eyeing pay hikes of 7% each, followed by the consumer goods sector at 6.5%.
Mining and related services are likely to maintain their pay hikes next year, but may offer the highest payout of variable bonuses of 3.6 months, the survey showed. Indonesian employers paid out about 2.3 months worth of bonuses in 2021.
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