The average salary in Asia is around 12,883 USD per year, which is significantly lower than the average salaries in other continents like North America (USD 50,832) and Europe (USD 37,020). This makes Asian countries competent outsourcing locations.
However, you need to look into minimum wage, salary range, and other aspects of salary to understand whether outsourcing to Asia is profitable for your business.
In this article, we’ll share a country-wise breakdown of the average salary in Asia and compare it with other regions. We’ll also dive into the key benefits of outsourcing to Asia and discover the top four Asian countries to outsource to.
Table of Contents
Let’s get started.
What is the average salary in Asia?
The average monthly net salary in Asia is USD 1,069. Singapore has the highest average monthly salary (USD 6,332), while Syria has the lowest (USD 60). This is based on the exchange rates in April 2023.
Here are the average monthly salaries of different countries in Asia:
| Country/Region | Average Salary Per Month |
| Singapore | USD 6,332 |
| United Arab Emirates | USD 5,337 |
| Hong Kong | USD 4,663 |
| Oman | USD 4,597 |
| Saudi Arabia | USD 4,453 |
| China | USD 4,255 |
| Qatar | USD 4,313 |
| Taiwan | USD 4,222 |
| Japan | USD 3,825 |
| South Korea | USD 2,930 |
| Thailand | USD 2,787 |
| Jordan | USD 2270 |
| Turkmenistan | USD 1,497 |
| Malaysia | USD 1,484 |
| Tajikistan | USD 1,062 |
| Kazakhstan | USD 845 |
| The Philippines | USD 792 |
| Vietnam | USD 732 |
| Bhutan | USD 452 |
| India | USD 388 |
| Pakistan | USD 292 |
| Sri Lanka | USD 280 |
| Bangladesh | USD 245 |
| Kyrgyzstan | USD 223 |
| Uzbekistan | USD 116 |
Source: Numbeo.com, Salaryexplorer.com
According to ECA International, the Asian continent may experience a real salary increase (salary increase adjusted after inflation rates) by the end of 2022. Countries in Southeast Asia, like Vietnam and China, are forecasted to have the highest real salary increase rates.
Median salary In Asia
The median salary in Asia is around USD 547 per month.
The median salary represents the middle value of the country-wise salary distribution in Asia. This means that 50% of the countries have an average salary higher than USD 547, and the other 50% earn lower than USD 547.
Here are the median salaries of different Asian countries:
| Country | Median Salary per Month |
| Oman | USD 3,922 |
| China | USD 3,892 |
| Taiwan | USD 3,760 |
| South Korea | USD 2,628 |
| Jordan | USD 1,931 |
| Azerbaijan | USD 1,559 |
| Malaysia | USD 1,303 |
| Iran | USD 922 |
| The Philippines | USD 732 |
| Kazakhstan | USD 727 |
| India | USD 330 |
| Pakistan | USD 251 |
| Sri Lanka | USD 251 |
| Bangladesh | USD 226 |
Source: Salaryexplorer.com
Salary range in Asia
Like in the other continents, employee salaries in Asian countries vary based on factors like economic conditions, type of industry, employee’s experience, cost of living, etc.
Here are the highest and lowest averages of different Asian countries:
| Country | Lowest Average per Month | Highest Average per Month |
| China | USD 1,076 | USD 19,024 |
| Kuwait | USD 1,044 | USD 18,396 |
| South Korea | USD 740 | USD 13,103 |
| Thailand | USD 734 | USD 13,980 |
| Malaysia | USD 376 | USD 6,619 |
| Iran | USD 267 | USD 4,731 |
| Russia | USD 254 | USD 4,490 |
| The Philippines | USD 201 | USD 3,534 |
| India | USD 98 | USD 1,737 |
| Sri Lanka | USD 71 | USD 1,249 |
| Myanmar | USD 66 | USD 1,157 |
Source: Salaryexplorer.com
Minimum wage in Asia
The minimum wage is the lowest compensation an employer has to give an employee for their hourly service.
Here are the minimum wages in some prominent countries of Asia:
| Country | Minimum Wage per Month (USD) |
| China | USD 376 |
| Malaysia | USD 338 |
| The Philippines | USD 202 |
| Russia | USD 199 |
| Kazakhstan | USD 153 |
| Bangladesh | USD 75 |
| India | USD 43 |
| Sri Lanka | USD 39 |
Source: Tradingeconomics.com
GDP per capita in Asia
GDP (Gross Domestic Product) per capita is the GDP of the country divided by its population. It’s a key indicator of a country’s economic productivity and salary growth.
That’s why business owners need to analyze it before making an outsourcing decision.
A low per capita GDP indicates an under-developed economy with low earnings and stock prices. And a high GDP value is a sign of higher average income and stock prices – all indicators of a good economy.
Here’s the GDP per capita (adjusted by PPP or purchasing power parity) of different Asian countries, as per the World Bank data:
| Country | GDP Per Capita |
| South Korea | USD 34,998 |
| Oman | USD 19,510 |
| China | USD 12,556 |
| Malaysia | USD 11,109 |
| Kazakhstan | USD 10,374 |
| Jordan | USD 4,103 |
| Azerbaijan | USD 5,388 |
| Sri Lanka | USD 4,014 |
| The Philippines | USD 3,461 |
| Iran | USD 4,091 |
| Bangladesh | USD 2,458 |
| India | USD 2,257 |
| Pakistan | USD 1,505 |
| Yemen | USD 702 |
Source: Worldbank.org
Now that you know the average salaries in Asia and their different aspects, let’s compare them with the average salaries in countries from other continents.
Average salaries in Asia compared to the rest of the world
The average salary in Europe and North America is significantly higher than that in Asia. Puerto Rico, another Latin American country, also has a higher average monthly salary of USD 1,927.
On the contrary, the average salary in Asia is higher than in countries in Latin America like Brazil and Mexico. Most African countries, except South Africa (USD 2,106), also have lower average salaries than Asia.
Here’s a table comparing the average salary of different non-Asian countries with Asia:
| Country | Average Salary per Month | Compared to Asia |
| Canada | USD 7,397 | 2.2 times more (approximately) |
| United Kingdom | USD 7,361 | 2.1 times more (approximately) |
| Denmark | USD 5,969 | 2.7 times more (approximately) |
| Netherlands | USD 5,347 | 2.3 times more (approximately) |
| Luxembourg | USD 5,310 | 3.2 times more (approximately) |
| Finland | USD 5,139 | 2.1 times more (approximately) |
| Australia | USD 5,078 | 2.9 times more (approximately) |
| Iceland | USD 5,034 | 2.5 times more (approximately) |
| New Zealand | USD 4,998 | 2.3 times more (approximately) |
| Norway | USD 4,819 | 2.7 times more (approximately) |
| Germany | USD 4,174 | 2.2 times more (approximately) |
| Sweden | USD 4,355 | 2.2 times more (approximately) |
| Ireland | USD 3,517 | 2.3 times more (approximately) |
| South Africa | USD 1,712 | 1.7 times more (approximately) |
| Kenya | USD 1,087 | 2.9 times less (approximately) |
Source: Numbeo.com, Salaryexplorer.com
Disclaimer: All the average wage and salary figures in this article are taken from various independent salary surveys. These figures are salary estimate values and are only intended as general guidelines.
Now, let’s look at the main benefits of outsourcing to Asia.
3 key benefits of outsourcing to Asia
According to a Grand View Research survey published in 2021, the Asia Pacific market is expected to have the fastest CAGR (Compound Annual Growth Rate) during the forecast period (2021-2028). This could be because of the numerous advantages connected with outsourcing to Asia.
Let’s look at the three key benefits of outsourcing to Asia:
1. Cost-effectiveness
Most Asian countries have developing economies and lower average salaries than their western counterparts, as evident from the data above.
For example, the average salary in Malaysia is USD 1,565, and that in Sweden is USD 4,767. An outsourcing company will have to pay almost thrice to employ its workforce in Sweden compared to Taiwan.
Additionally, most Asian countries have a lower cost of living than European and North American countries. As a result, outsourcing companies can run their operations more economically and draw more profits.
2. Access to talented employees
Asia is home to diverse talents specializing in various fields.
According to Microsoft, around 6 million people in the Asia Pacific region acquired digital skills during the Covid-19 pandemic.
Additionally, a HackerRank survey said that China has the best developers globally, with a score index of 100. The top 10 countries in the list also feature Russia (99.9), Japan (92.1), and Taiwan (91.2).
As per a Coursera survey, Vietnam and Hong Kong have cutting-edge business skills. At the same time, Russia and Hong Kong come within the top 10 countries that excel in data science.
Moreover, the report also said that European countries are facing an acute shortage of professionals in the digital field. Whereas Japan, Indonesia, and China have plenty of expert professionals in cloud computing, software development, and other fields.
3. Continuous workflow
Clients can leverage the time zone difference with Asian countries and operate 24/7 if they outsource there.
For example, an American customer service company can outsource its operations to an Asian country. The offshore team can attend to customer issues while their in-house team relaxes.
Now let’s see the four best Asian countries you can outsource to.
Top 4 Asian countries for outsourcing
Out of the 47 countries and three dependencies in Asia, a few of them stand out from the group as popular outsourcing destinations.
Here are the top four countries in Asia to outsource your services:
1. India
The average monthly salary in India was ranked 72nd among the 106 countries surveyed by Picodi.com in 2020. This means that outsourcing companies can run their business in the country at low costs.
Apart from that, India ranks 7th in the world in SJR (Scimago Journal & Country Rank) with 91.44% studies. Also, according to a list published by Stanford University, there are 26 Indian scientists among the top 50 most cited scientists in the world.
In addition to that, India is the largest English-speaking country in the world, even surpassing the USA. As a result, businesses from all over the world can communicate effectively with Indian service providers and benefit from their skilled services.
Learn more about outsourcing to India from our comprehensive guide.
2. China
China is one of the most cost-effective countries with an average monthly income of USD 879 – a key factor of outsourcing. For reference, the average income of the USA is USD 5,378 per month – almost six times China’s average income.
Further, the average monthly wage in the country varies due to disparity in job availability, household requirements, employment status (full-time employee/ part-time employee), and more.
Similarly, the average income also varies across the country.
For example, Wuxi (a small Chinese city) has a lower average wage than Beijing (the capital of China). This gives you more options and flexibility to choose your outsourcing location.
Check out our detailed guide on the average salary in China.
3. The Philippines
Outsourcing to the Philippines can ensure the safety of your company’s data – which could be at a higher risk during outsourcing. The government has brought several policies, like the Data Privacy Act, to improve data security.
Moreover, the Philippines has a low average yearly salary of PHP 161,847.60 (USD 10,232.67). On top of that, the frequency of increments and the associated amount is lower than seen in many other countries.
For example, the Philippines has an average increment percentage of 8% every 18 months, and the same in the USA is 8% every 16 months.
All these factors make this country a great outsourcing destination.
Here’s a detailed guide on the average salary in the Philippines.
4. Malaysia
Malaysia is an outstanding outsourcing destination due to its business-friendly policies.
For example, the National ICT Association of Malaysia PIKOM is an association of Information and Communication Technology (ICT) with over 1000 member companies.
It brought forth a venture investments initiative in 2018 to support companies with VC (Venture Capital) funding and mentoring.
Additionally, Picodi.com ranked Malaysia 47th among the 106 countries in terms of average salary. The country surpassed other Asian countries like Qatar, Kuwait, Hong Kong, etc.
This means that outsourcing to Malaysia can be cheaper when compared to these countries.
Check out our article on the average salary in Malaysia.
Wrapping up
Asian countries are suitable outsourcing destinations due to their growing economy, favorable government policies, etc.
Most importantly, they have lower average salaries than North America and Europe. This reduces the overall expenditure of employing a skilled workforce.
But before you make a decision, go through the average salary figures in this article. You may get a better idea of how much you need to spend on your offshore team.