In this article, we will look at the 15 countries with the highest average salaries in Asia. We have also discussed the economic development taking place in Asia in 2024. If you want to skip our detailed analysis, head straight to the 5 Countries with the Highest Average Salaries in Asia.
Economic Development in Asia in 2024
According to the Asian Development Bank, Developing Asia is forecasted to grow by 4.9% in 2024 and maintain the same rate in 2025, driven by factors like the end of interest rate hikes and a recovery in goods exports, especially in semiconductor demand. India is leading in the investment-driven growth, positioning itself as a major economic engine in the region.
Moreover, inflation in developing Asia is projected to be 3.2% in 2024, slightly decreasing to 3.0% in 2025. Subregionally, South Asia is leading in growth, with forecasts of 6.3% in 2024 and 6.6% in 2025. India’s growth is anticipated to remain strong at 7.0% in fiscal year 2024, supported by rising consumption and investment. Bangladesh expects growth driven by garment exports, while Bhutan sees growth due to hydropower investment. Pakistan and Sri Lanka are set to recover from previous contractions, though challenges like inflation persist.
Southeast Asia forecasts growth of 4.6% in 2024 and 4.7% in 2025, with Indonesia, Thailand, Viet Nam, the Philippines, and Malaysia driving growth through strong domestic demand and recovering exports. Meanwhile, the Pacific expects a slight decline in 2024 before picking up in 2025, with Papua New Guinea leading growth due to increased mining activity.
State of Jobs in South Asia
While the economic development looks promising, it is worth highlighting that in South Asia, job creation has struggled to keep up with the rapid expansion of the working-age population, according to a report by the World Bank. Over the period from 2000 to 2023, employment grew at a rate of 1.7% annually, while the working-age population increased by 1.9% each year. This imbalance led to a situation where the region was only able to generate an average of 10 million jobs annually, despite a working-age population growth of 19 million per year.
India, the largest economy in South Asia, has experienced major challenges in job creation despite strong economic growth. The country’s employment ratio declined over the same period, except for a partial rebound in 2023. While India’s economy is expected to expand at a rate of 6.6% with the potential for even stronger growth, private investment remains weak.
Speaking of jobs, finance specialists and information technology specialists are two of the highest paying jobs in Asia. To read more about highest payings jobs, see the Best Remote Jobs That Pay at Least $100 an Hour.
Owing to the economic potential of Asia, Microsoft Corp (NASDAQ:MSFT) is currently involved in several contributions to Asia, particularly in Malaysia, with a landmark investment of $2.2 billion over the next four years. It is Microsoft Corp (NASDAQ:MSFT)’s largest commitment in its 32-year history in Malaysia and is essentially focused on several key areas such as building digital infrastructure and creating AI skilling opportunities.
The investment will also entail building cloud and AI infrastructure in Malaysia, which will not only meet the growing demand for cloud computing services but also enable the country to capitalize on the economic opportunities presented by AI technology. Additionally, Microsoft Corp (NASDAQ:MSFT) aims to provide AI skilling opportunities for an additional 200,000 people in Malaysia and hence, contribute to the development of a skilled workforce prepared for the AI era. Furthermore, Microsoft Corp (NASDAQ:MSFT) is strengthening its partnership with the Government of Malaysia to establish a national AI Centre of Excellence and enhance the country’s cybersecurity capabilities. While Asia has been a hot destination for investments by several multinational companies, it is not immune to global lay offs.
Lay Offs in Asia in 2024
For example, Morgan Stanley (NYSE:MS) plans to slash around 50 investment banking jobs in the Asia-Pacific region, with the majority concentrated in Hong Kong and China. These cuts will affect roughly 13% of the regional banking workforce and highlight the severity of the challenges facing the industry.
Moreover, during the final phase of a comprehensive global restructuring, Citigroup Inc (NYSE:C) has executed layoffs in its equities research division in Asia Pacific. At least 10 employees were affected by this recent action. Citigroup Inc (NYSE:C)’s restructuring efforts have seen a reduction in management layers from 13 to 8 with an aim to optimize efficiency. This latest round of layoffs aligns with the bank’s target of reducing its global workforce by 20,000 over the next two years, as stated by CEO Jane Fraser. The bank previously announced plans to eliminate 1,500 managerial roles, constituting 13% of its leadership globally, with estimated annual savings of $1 billion. However, the repercussions extend beyond the equities research department, as Citigroup Inc (NYSE:C) plans to continue downsizing across all divisions in the Asia-Pacific region, including investment banking.
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Methodology
To list the countries with the highest average salaries in Asia, we looked at the 48 Asian countries in the world and their average salaries. Out of the 48, the 15 with the highest average salaries have been selected and presented below. We obtained salary data from our salary database primarily and also utilized salary data from the Salary explorer as a secondary source. The list is presented in an ascending order of average salaries.
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15. Macau, SAR, China
Average Salary: $25,370
As of January 1, 2024, minimum wages in the Macau Special Administrative Region have been increased from MOP6,656 ($823) to MOP7,072 ($882) per month. This adjustment aims to ensure that workers’ livelihoods keep pace with changing costs of living in the country.
14. Cyprus
Average Salary: $30,533
In Cyprus, average salaries increased by 6.2% in the fourth quarter of 2023. Moreover, according to the Provisional data from the Statistical Service, there has been a substantial increase in average gross monthly earnings in Cyprus as they reached €2,693 ($2901). However, gender pay disparities still persist, as male employees earn €2,884 ($3106) per month compared to €2,452 ($2641) for female counterparts on average.
13. Brunei
Average Salary: $30,690
In 2023, Brunei announced a phased introduction of minimum wages across different industries. Starting with banking, finance, and ICT sectors, full-time workers are entitled to a minimum of $500 per month, while part-time workers receive at least $2.62 per hour. Employers have a 6-month transitional period to update contracts. If failed, they will face fines up to $3,000 and potential jail time.
12. Malaysia
Average Salary: $31,000
In Malaysia, Prime Minister Anwar Ibrahim has announced a major salary increase of over 13% for civil servants starting from December 2024 to address the concerns over increasing prices and a weakening ringgit currency. This hike amounts to a 10 billion ringgit ($2.10 billion) allocation and aims to ensure a minimum monthly income exceeding 2,000 ringgit ($421) for civil servants.
Owing to the relatively affordable housing, Malaysia is also considered to be one of the countries with high salary and low cost of living in Asia.
11. Saudi Arabia
Average Salary: $32,500
Fueled by Vision 2030, Saudi Arabia is witnessing an increase in demand for skilled professionals across different sectors. For example, information technology specialists are highly sought after, given the country’s digital transformation, with the ICT market projected to reach $49.26 billion by 2026. Engineers, particularly in civil, mechanical, and electrical fields, are also in high demand due to infrastructure and construction projects like NEOM.
10. South Korea
Average Salary: $38,561
While South Korea is one of the best-paying countries in Asia, there are concerns about AI replacing jobs in the country. According to a Bank of Korea study, artificial intelligence could replace up to 4 million jobs in South Korea, constituting 14% of the workforce, over the next two decades. The threat is higher for educated workers, especially in analytical and cognitive fields like chemistry, medicine, law, accounting, and asset management.
To read more about AI-proof jobs, see 20 Jobs Artificial Intelligence Can’t Replace.
9. Oman
Average Salary: $41,355
In Oman, the Ministry of Labor has recently mandated the implementation of the Wages Protection System (WPS) to ensure timely salary payments to employees. As per the system, the salary disbursement must occur within seven days of due date, except for specific circumstances like unpaid leave.
Oman is also one of the most respected countries in Asia.
8. Israel
Average Salary: $42,300
In March 2024, Israel observed an increase in average wages across different sectors. The overall average salary rose to NIS 14,108 ($3,800) which was a 4.2% increase from February and a 3.5% rise from the previous year. Specifically within the high-tech industry, salaries increased largely by reaching an average of NIS 33,964 per month ($9,137).
Israel is also one of the countries with the highest minimum wages in Asia.
7. Japan
Average Salary: $45,000
Japanese workers have recently secured their largest pay rise in over three decades, with major companies like Toyota, Nippon Steel, ANA Holdings, and Honda offering remarkable increases. Average wage hikes for unionized workers are expected to exceed 4% which is the highest increase since 1992. Toyota alone has agreed to a monthly pay increase of up to ¥28,440 ($185), while Nippon Steel observed an 11.8% jump in base salary.
With an average salary as high as $45,000, Japan is one of the top 10 countries with the highest average salaries in Asia.
6. Hong Kong
Average Salary: $46,951
In the first quarter of 2024, Hong Kong employees observed a median monthly income of HK$29,715 ($3802), with more than 60% receiving a pay rise of an average 8.4%. The information technology/e-commerce sector observed the highest median income of HK$32,000 ($4094), while the food and beverage industry trailed at HK$17,290 ($2212).
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Disclosure: None. 15 Countries with the Highest Average Salaries in Asia is originally published on Insider Monkey.