34 percent of employers across the Asia Pacific region have made changes to salaries as a result of COVID-19, according to the latest Salary Budget Planning Report by Willis Towers Watson. The majority of those changes are negative: 23.5 percent are planning a salary freeze and 13.4 percent are postponing salary increases, a significant increase from 2019's numbers.

“It is no surprise to see that many companies have reduced their salary budgets," said Edward Hsu, Business Leader, Rewards Data & Software, Asia Pacific, Willis Towers Watson. "Most businesses around the world are in cash preservation and cost optimization mode. Here in Asia Pacific, 49 percent of companies have already taken hiring or restructuring actions."

Unsurprisingly, the industries least likely to increase salaries in 2021 include leisure and hospitality, with energy and natural resources also affected due to the oil price crash. In contrast, companies in fintech, high tech, and pharmaceutical and health sciences are planning to increase their salary budgets next year.

"Compared to last year, job opportunities in IT functions have exceeded technical skilled trades, a reflection of the increased digital transformation of businesses. In addition, we are seeing more companies putting a greater emphasis on their IT resources and departments. This could be due to the increased focus on their IT infrastructure caused by the prevalence of remote working adopted by companies as a result of the pandemic, leading to a rise in demand for more jobs in this function,” said Hsu.

The report also turned up a marked difference in salary budgets between APAC countries. Japan, Australia, and New Zealand are projected to see the lowest salary growth of 3 percent next year, while India, Pakistan, and Vietnam will see the highest growth of 8.9 percent and above.