SINGAPORE - Media OutReach Newswire - 8 October 2025 - Aon plc (NYSE: AON), a leading global professional services firm, has announced the findings from its 2025 Salary Increase and Turnover Study for southeast Asia (SEA). The study, conducted from July to September 2025, analysed the salary adjustments and employee turnover rates of more than 700 businesses across Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.

The survey found that overall, the budgeted salary increases for SEA are projected at 5.3 percent for 2026.

Country	Salary Increase 2024 (%)	Salary Increase 2025 (%)	Projected (Budgeted) Salary Increase 2026 (%)	Attrition in 2023 (%)	Attrition in 2024 (%)	Attrition in 2025 (%)
Overall	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

When salaries are analysed across industries by country, the life sciences and medical devices industry is expected to have the highest increase in Singapore (4.6 percent), while technology leads in Vietnam (7.1 percent) and Indonesia (5.9 percent). The consulting, business and community services industry leads in Malaysia at 4.8 percent.

Rahul Chawla, partner and head of Talent Solutions for southeast Asia at Aon, emphasized the dual priorities facing organisations today, "As capital deployment in technology and strategic investments accelerate across southeast Asia, organisations are increasingly focused on retaining top talent and highly skilled employees. 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."

Attrition rates for all countries in the region were in double digits. The Philippines and Singapore are projected to have the highest turnover rates at 20.0 percent and 19.3 percent, respectively, followed by Malaysia at 18.2 percent. Attrition rates also vary across industries, with consulting, business and community services highest at 22.6 percent followed by retail at 21.6 percent and manufacturing at 17.5 percent.

The study revealed that 42 percent of businesses report challenges in hiring or retaining employees. Additionally, 63 percent are currently facing skills gap challenges, while 12 percent anticipate short-term gaps and 16 percent foresee longer-term gaps. Roles in information technology, engineering and sales remain the hardest to fill, while new hire premiums range between 1.3 to 8.2 percent, lower than the previous year, reflecting higher cost controls.

The most in-demand "hot jobs" include sales (24 percent), information technology (24 percent), artificial intelligence (AI)/machine learning (ML) (21 percent), cybersecurity (20 percent) and engineering (19 percent), reflecting a sharp pivot toward digital and risk-focused capabilities. This surge in demand, especially for AI/ML and cybersecurity signals that firms are prioritising sustained compensation strategies to secure future-critical skills in an increasingly competitive market.

Evon Lock, head of data solutions for southeast Asia at Aon, said, "Despite the hiring and retention pressures, most organisations remain cautiously optimistic, planning to maintain or modestly grow their workforce. To navigate an uncertain business landscape, firms are prioritising productivity gains, streamlining management layers and adopting targeted hiring strategies and salary increases to engage top performers and build resilient, future-ready teams."

More information about Aon in Asia can be found here.