Salary transparency gains steam in Asia as young people share their salaries online

Pay transparency is gaining traction as organizations adapt to new regulations, but one part of the world is still playing catch-up as discussing compensation openly remains taboo.

"In contrast to the United States and some European markets, pay transparency and disclosure requirements in Asia are still evolving," according to a 2024 report by management consulting company Aon.

Although about 80% of organizations surveyed in Asia consider pay transparency important, "most Asian markets do not have specific pay equity and transparency guidelines," according to the report which surveyed more than 350 human resource professionals across Asia.

"In many Asian companies, employees are typically discouraged from sharing their salary information with their colleagues. This practice is often outlined in employment contracts or treated as an unspoken rule," Peter Zhang, head of talent solutions, APAC, at Aon told CNBC Make It.

"This may be attributed to cultural norms and limitations in the maturity of compensation practices and processes," he said. "In addition, Asian economic and labor markets are more dynamic and volatile. Employers tend to pay a premium to selected groups of talent to gain a competitive advantage."

Another obstacle is the lack of "management maturity" and "skills in handling sensitive compensation conversations" in the region, said Zhang.

Whereas places like California and New York have laws that require companies to share pay ranges on job postings, most companies in Asia (84%) limit pay transparency to internal stakeholders.

Currently, the top driver of pay transparency practices in Asia is "regulation and compliance" (72%) according to the report. But rather than waiting for new legislation to come along, some