2025 Salary Trends in Southeast Asia: Why Indonesia and Vietnam Are Leading

Two countries in Southeast Asia are fast becoming hubs of innovation, investment, and professional opportunity. A recent survey by Aon Global Risk Management confirms this shift: in 2025, Indonesia and Vietnam are leading the region in salary increases, highlighting how strong demand for talent is driving wages upward. 

For employees, this is encouraging news. For businesses, however, salary growth is only part of the story. Attracting and retaining skilled workers requires more than money, as it demands strategies that strengthen security, health, and long-term career value. 

Salary growth: Southeast Asia’s rising tide 

The Aon survey, which analysed data from 950 companies across six Southeast Asian countries between July and September 2024, revealed that despite easing inflation, firms are still allocating aggressively for salary increases. This reflects the supply-demand imbalance in skilled labour markets. 

2025 projected salary increases by country: 

• Vietnam: 6.7%, the highest in the region, with the tech sector at up to 7.5%. 

• Indonesia: 6.3%, driven partly by President Prabowo Subianto’s 6.5% minimum wage increase 

• Philippines: 5.8%. 

• Malaysia: 5.0%. 

• Thailand: 4.7%. 

• Singapore: 4.4%. 

While Singapore shows slower growth, reflecting stabilising inflation and a mature labour market, Indonesia and Vietnam are surging ahead, powered by investments in manufacturing, technology, and infrastructure. 

Attracting skilled professionals and remote workers 

Rising compensation makes Indonesia and Vietnam increasingly attractive for both regional professionals and global mobile talent. 

1. Regional professionals seeking growth 

High demand in technology, engineering, and consulting offers opportunities for ambitious professionals to advance into leadership roles faster than in more mature economies. 

2. Digital nomads and remote work hubs 

Indonesia has become a global hotspot, particularly in Bali and Jakarta, where coworking spaces, vibrant communities, and supportive visa policies attract remote workers. Vietnam, with hubs such as Ho Chi Minh City and Da Nang, offers affordable living, strong connectivity, and a fast-growing startup ecosystem blending traditional industries with new tech ventures. 

For remote workers, this balance of rising salaries, affordable living, and thriving cultural environments stands in stark contrast to costly Western cities. 

3. Cost of living advantage 

Despite higher wages, living costs in Indonesia and Vietnam remain far below those in cities like Singapore, Hong Kong, or Tokyo. This creates a powerful salary-to-cost advantage, enabling professionals to enjoy more disposable income, a higher standard of living, and stronger saving potential. 

4. Booming startup and innovation ecosystems 

Indonesia hosts Southeast Asia’s largest digital economy, with unicorns in fintech, e-commerce, and logistics, as well as major investments in EV manufacturing and green industries. 

Vietnam is increasingly a base for international tech firms outsourcing development and R&D, attracted by its young, highly educated workforce. 

This makes both countries not only top wage destinations but also career accelerators, rewarding skilled contributions quickly. 

5. Global talent migration trends 

With slower growth and stricter immigration policies in Western economies, skilled professionals are increasingly drawn toward emerging markets. Indonesia and Vietnam, with their rising salaries and expanding opportunities, are becoming preferred alternatives for both mid-career experts and new graduates. 

Together, these dynamics create a magnetic pull—higher earnings, lower costs, thriving business environments, and dynamic expatriate communities are turning Indonesia and Vietnam into global talent hotspots. 

The retention gap: Why salaries aren’t enough 

Yet, while salaries are on the rise, employers face a sharper challenge: retaining this valuable talent. 

• 64% of companies admit they struggle with recruitment and retention. 

• Employees are no longer motivated by pay alone. They want holistic value, including wellness, training, global career mobility, and security. 

• As competition for labour intensifies, workers with specialised expertise can quickly switch employers if they’re not fully satisfied. 

This retention gap has become as critical as the wage race itself. 

The role of comprehensive employee benefits 

Health and well-being should be treated as a long-term investment, not a short-term cost. Companies that consistently invest in these key factors gain stronger retention, higher engagement, and improved performance, particularly in fast-growing markets like Indonesia and Vietnam. 

APRIL International offers tailored corporate solutions that help businesses stand out with comprehensive benefits for SMEs and large corporations: 

• Global Coverage: International health insurance ensures employees are protected whether they’re in Singapore, travelling to Dubai, or relocating to Thailand.  

• Employee Assistance Program (EAP): Holistic support beyond physical health, including: 

• Teleconsultation: Unlimited, 24/7 access to medical professionals via phone or video. 

• Second Medical Opinion: Expert medical guidance through a global network of 50,000+ top specialists with Teladoc Health. 

• Mental Health Counselling: Confidential sessions covering stress, anxiety, burnout, and major life challenges. 

• Digital Tools: All services are available through APRIL’s Easy Claim App and secure Member Portal, giving employees immediate access to care and support. 

Conclusion 

As economies like Indonesia and Vietnam surge with competitive salary growth, they are also reshaping global talent flows. Professionals are drawn by both the financial prospects and the dynamism of economies investing in technologies and workforce expansion. 

To capitalise on this momentum, businesses must look beyond wages and embrace comprehensive, adaptable employee benefit strategies. With APRIL International’s corporate solutions, companies in Asia are well-positioned to not only hire top talent but also secure long-term workforce stability, trust, and loyalty.