China’s low labour costs challenged – Willis Towers Watson

Base salaries in emerging economies in south East Asia are substantially lower than those in mainland China, challenging the latter’s labour-cost competitiveness, according to research from Willis Towers Watson. China’s base salaries across all job grades are between 5% and 44% higher than in Indonesia, which itself is the most expensive labour market among the emerging economies in the ASEAN zone (including the Philippines, Vietnam, Malaysia, Thailand and Indonesia).

Sambhav Rakyan, Data Services Practice Leader, Asia Pacific at the firm said:

‘The lower salaries in these ASEAN countries give them a competitive edge and there’s evidence that it is leading companies to reconsider where they locate operations once based in China, where an ageing population and shrinking workforce suggest salaries will remain higher.’

For more information about the ‘Global 50 Remuneration Planning Report 2015/16’ please visit: www.willistowerswatson.com/en/press/2016/04/Low-Labour-Costs-in-Emerging-ASEAN-Erode-China-Competitiveness