Sign up | Log in



Home  >>   Daily News  >>   Asean News  >>   Labour  >>   Pay rises in Asia outside China 'disappointing'
NEWS UPDATES Asean Affairs   12 December 2012 

Pay rises in Asia outside China 'disappointing'


Wage increases in Asia have outperformed those in most other parts of the world, including the Western economies, but still have a long way to go, according to a new report from the International Labour Organisation (ILO).

One key mechanism for improving the situation is government-mandated minimum-wage rises, the ILO said, noting Thailand's and Malaysia's progress in this area.

Between 2000 and 2011, wages in Asia almost doubled. Globally, real average monthly wages grew by just under a quarter in the same period, while in the developed world the increase was only around 5 per cent over the entire period.

The "Global Wage Report 2012/13: Wage and Equitable Growth", was released yesterday by the ILO, a United Nations agency that deals with work and work-related issues.

Asia's good performance is mainly due to China, where wages in urban units have grown at an annual rate of 10 per cent or more over the past decade.

When China is excluded from the analysis, wages in the rest of Asia have stagnated in recent years and were lower in real terms in 2011 than in 2007.

"Given the solid economic performance of many countries in the region, this is a disappointing outcome," said Yoshiteru Uramoto, ILO regional director for Asia and the Pacific.

Wage levels in developing Asia remain far lower than in Western countries, with average manufacturing wages in India, China and the Philippines well under US$2 (30 baht) per hour, compared with US$12.68 in Singapore and US$18.32 in Japan.

"The emerging economies of Asia have traditionally relied on exports and cheap labour as a source of economic growth," said Sukti Dasgupta, the ILO's head of regional economic and social analysis for Asia. "The global economic crisis has shown the limitations of this approach. Giving workers greater purchasing power can help to strengthen domestic consumption as a stable source of demand and reduce the reliance on exports."

The report calls on countries to reconnect wages and productivity, and to strengthen wage-setting institutions such as collective bargaining between trade unions and employers and minimum-wage legislation.

"Across the Asian region, we see a renewed interest in minimum wages in countries such as Thailand and Malaysia," said Malte Luebker, the ILO's senior regional wage specialist. "If properly designed, minimum wages have proved an effective policy tool which can provide a decent wage floor and protect low-paid workers against unduly low wages."

The report says minimum wages should be set after consultation with unions and employers, and should strike a balance between the needs of workers and their families and economic factors, including productivity.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    12 December 2012  
Subsribe Now !
 • Asean to see double-digit growth in digital technology   Subcribe: Asean Affairs Global Magazine
• Asean countries fare poorly in corruption index Asean Affairs Premium
• Pay rises in Asia outside China 'disappointing'
• Jakarta most preferred real estate investment destination
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Vietnam reaffirms support for law of sea treaty
• Indian businesses urged to consider Cambodia as gateway to Asean  
Asean Analysis              12 December 2012      Advertise Your Brand
• Asean Analysis- December 12, 2012  
• Asean Weekly-  December 7, 2012 Sponsor Our Events

Asean Stock Watch      11 December 2012   

• Asean Stock Watch- Demcember 11, 2012 

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand