HR News & Trends: Dec Week 3

HR News & Trends: Dec Week 3

HR News & Trends: Dec Week 3

1. Policies

i. Japan to Roll Out Law to Support Women’s Workforce Participation

The Japanese government is planning to introduce a new law aimed at promoting women’s participation in the workplace.

  • Target: The law, proposed by the Health Ministry, will apply to businesses with 101 or more employees.
  • What:
    • These firms will be encouraged to develop action plans to support women’s health at work, such as offering period leave and improving health literacy. Employers will be able to voluntarily disclose their efforts, with the information being published publicly.
    • The government is also considering a certification to recognise companies that excel in supporting women.

This initiative complements previous efforts to improve women’s workforce participation and address challenges like wage gaps and health-related issues, such as women working while experiencing menstrual pain.

 

ii. Thailand to Reduce Corporate Tax to 15% from January 2025

Thailand’s Finance Minister announced a new 15% minimum corporate tax that will take effect in January 2025 for companies with annual revenues exceeding $750 million. This change aims to enhance economic fairness and align with the OECD’s global tax agreement designed to reduce tax avoidance. The move represents a notable shift from the current 20% corporate tax rate, especially for businesses that have previously enjoyed exemptions and reduced rates.

Takeaway: This policy could have various effects on the workforce.

  • Increased investment in workforce development: With more equitable tax contributions from corporations, the government could have additional resources to allocate towards public services such as education, healthcare, and workforce training initiatives.
  • Greater job security: By ensuring a fair competition landscape for local businesses and multinational companies, this tax policy could safeguard local firms and their employees from unfair competition.
  • Improved workplace equity: Advocating for fair taxation may prompt corporations to prioritise equitable pay and benefits, creating a positive work atmosphere and enhancing employee morale.
  • Possible effects on salaries and benefits: While some companies might offset the increased tax burden by cutting costs, others may see this as a chance to bolster their employer reputation by maintaining or improving employee benefits.

This approach aligns with a broader movement towards economic equity, which could ultimately support the workforce by fostering a more balanced and sustainable business climate.

 

2. Compensation & Benefits

i. Singapore Employees May Expect 2 – 5% Increase in Pay in 2025

In 2025, salary increases in Singapore are expected to range from 2% to 5% on average, with variations across sectors. Companies are expected to take a cautious approach due to economic uncertainty, and the forecasts are as follows:

  • Regional Performance:
    • Singapore employees are expected to receive 4.4%, behind countries like Indonesia and Thailand.
    • Vietnam is expected to have the highest salary increment in the region (6.7%).
  • Sectors:
    • Specific sectors, such as technology, healthcare, special education, sales promoters, and HR or business support professionals in strategic, niche roles, may see above-average increases.
    • Sales, marketing, finance, and accounting professionals switching jobs could expect 10 – 15% rises.
  • Bonuses: Bonuses may also increase, with more employers planning to offer at least one month’s bonus.

 

ii. APAC Bankers Project Bonus to Rise to 52.3% in 2025

The financial services sector, particularly in the Asia-Pacific (APAC) region, is experiencing unprecedented optimism regarding 2025 bonuses.

  • APAC: Bankers in APAC anticipate a 52.3% increase in bonuses, aligning with a significant recovery in investment banking revenues, which rose 27% in 2024.
  • Globally: The average expected bonus increase is 50%, far surpassing last year’s modest expectations.
  • Middle East: Optimism is even higher, with an anticipated 78.3% rise, driven by robust inflows of talent and investment into financial hubs like Dubai and Abu Dhabi.
  • North America: The region sees the smallest expected increase (38.4%), and this still contrasts with its strong 31% revenue growth.

 

iii. Japan’s Top Brokerages Lead in Enhancing Pay and Benefits for Seniors

Japanese securities firms are increasingly recognising the value of retaining senior talent in a rapidly ageing workforce. Historically, employees aged 60+ faced pay cuts and diminished roles, but major firms are reversing this trend by offering competitive compensation and more meaningful responsibilities aligned with their expertise. Key efforts include:

  • Pay Increases: Daiwa Securities and Sumitomo Mitsui raised senior employees’ salaries for two years in a row. Meanwhile, Mitsubishi UFJ plans salary hikes of up to 40% for retirees who rejoin.
  • Equal Benefits: Nomura Holdings to match paid sick leave for senior employees with what younger peers enjoy.
  • Age Limits: Nomura has also removed the upper age limits.
  • Role Adjustments: Companies like Mizuho Securities and Mitsubishi UFJ Morgan Stanley are enabling senior employees to enjoy the same welfare benefits or hold roles equivalent to younger staff.

Takeaway: This shift reflects the talent shortage challenge Japan faces as younger workforce proportions decline.

 

iv. UK Employers Maintain 4% Pay Deals but Expect Budget Cuts in 2025

UK employers are maintaining median pay deals at 4% for the fifth consecutive month, reflecting a decline from the 6% seen in 2023.

  • Projection: 40% of employers expect reductions in salary budgets in 2025.
  • Contributing Factors: The sentiments reflect the higher cost businesses incur resulting from higher tax bills, increased employer social security contributions, and a 7% minimum wage hike (effective April 2024).

The Bank of England is monitoring wage trends closely but is expected to hold interest rates steady this week.

 

Discover More Industry Trends with JC

For the latest industry trends or to explore new career opportunities, connect with our HR recruitment consultants for a chat. With executive search firms in Singapore and China, and operations in key business hubs like Hong Kong, you can count on our team for timely access to regional insights that can create synergy for your career and operations.

For employers: Beyond the HR industry, we also have dedicated desks for several sectors that enable us to meet your varied recruitment needs:

Image Credits:

  • Bloomberg
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