Pensions at a Glance Asia/Pacific 2022

Average wage

Key results

“Average wage (AW)” is an important metric as all pension modelling results are presented as multiples of this measure. The average for all Asian economies was USD 10 925 in 2020 and USD 20 521 in PPP terms.

Table 3.3 reports the Asian economies average wage for 2020, based primarily on survey data. The OECD’s full-time average wage (AW) levels are also given. The wage earnings are defined as gross wages before deductions of any kind (including personal income taxes and social security contributions), but including overtime pay and other cash supplements paid to employees.

Average wages are displayed in national currencies and in US dollars (both at market exchange rates and at purchasing power parities, PPP). The PPP exchange rate adjusts for the fact that the purchasing power of a dollar varies between countries: it allows for differences in the price of a basket of goods and services between countries.

Wage earnings across the Asian economies averaged USD 10 925 in 2020 at market exchange rates. Singapore has the highest at USD 48 596, with Hong Kong (China) next at USD 30 194, China at USD 11 295 (Table 3.3). The lowest levels are found in Pakistan, at USD 860 with India, Indonesia and Sri Lanka also under USD 3 000.

At PPP wages averaged USD 20 521. Singapore is again highest amongst the Asian economies, at USD 80 414, with Hong Kong (China) next at USD 38 614. Pakistan is again the lowest at USD 3 439 but India, Indonesia and Sri Lanka are also under USD 10 000, with the other Asian economies around USD 20 000 or lower. The higher figure for PPP wages suggests that many economies exchange rates with the US dollar were lower than the rate that would equalise the cost of a standard basket of goods and services.

Average wages for the OECD countries are much higher, averaging USD 39 178 at market exchange rates. Australia has the highest wages at market exchange rates for those OECD countries listed at USD 62 530, with Germany and the United States also around USD 60 000. The lowest values among the OECD countries listed are in Italy at USD 34 532 and Korea at USD 38 991.

At PPP wages averaged USD 46 520 across the OECD. Germany is now highest of the countries listed at USD 69 968, with Australia and the United States also over USD60 000. New Zealand is lowest at USD 43 965 with Canada and Italy being the only other OECD countries, of those listed, below USD 50 000. Again, the higher figure for PPP wages suggests that many OECD countries’ exchange rates with the US Dollar were lower than the rate that would equalise the cost of a standard basket of goods and services.

Definition and measurement

The “average worker” earnings series (AW), defined as the average full-time adult gross wage earnings, was adopted from the second edition of Pensions at a Glance (OECD, 2007[1]). This concept is broader than the previous benchmark of the “average manual production worker” (APW) because it covers more economic sectors and includes both manual and non-manual workers. The new AW measure was introduced in the OECD report Taxing Wages and also serves as benchmark for Benefits and Wages. The third edition of Pensions at a Glance (OECD, 2009[2]) also included a comparison of replacement rates under the old and new measures of earnings for eight countries where the results were significantly different.

Table 3.3. Average wage (AW), 2020

	OECD measures of average wages			Exchange rate, national currency per USD
	National currency	USD, market exchange rate	USD, PPP	Market rate	PPP
East Asia/Pacific
China	79 854	11 295	19 104	7.07	4.18
Hong Kong (China)	234 000	30 194	38 614	7.75	6.06
Indonesia	34 080 000	2 390	7 289	14 260.59	4 675.22
Malaysia	35 196	8 223	22 136	4.28	1.59
Philippines	197 832	3 977	10 320	49.75	19.17
Singapore	67 548	48 596	80 414	1.39	.84
Thailand	174 002	5 635	14 452	30.88	12.04
Viet Nam	83 488 800	3 589	11 274	23 262.63	7 405.19
South Asia
India	215 400	2 852	9 795	75.53	21.99
Pakistan	144 168	860	3 439	167.64	41.92
Sri Lanka	477 576	2 564	8 893	186.24	53.70
OECD Asia/Pacific
Australia	90 861	62 530	62 166	1.45	1.46
Canada	57 292	42 718	47 819	1.34	1.20
Japan	5 185 181	48 562	50 141	106.77	103.41
Korea	46 020 316	38 991	52 954	1 180.28	869.06
New Zealand	64 150	41 600	43 965	1.54	1.46
United States	60 220	60 220	60 220	1.00	1.00
Other OECD
France	38 188	43 618	51 569	0.88	0.74
Germany	52 104	59 513	69 968	0.88	0.74
Italy	30 233	34 532	45 190	0.88	0.67
United Kingdom	41 807	53 599	58 369	0.78	0.72
OECD		39 178	46 520

Note: USD = the United States of America Dollar, PPP = purchasing power parity.

Source: OECD pension models.

References

[2] OECD (2009), Pensions at a Glance 2009: Retirement-Income Systems in OECD Countries, OECD Publishing, Paris, https://doi.org/10.1787/pension_glance-2009-en.

[1] OECD (2007), Pensions at a Glance 2007: Public Policies across OECD Countries, OECD Publishing, Paris, https://doi.org/10.1787/pension_glance-2007-en.