Singapore Salary Trends 2024: Essential Insights for Corporate Compensation Strategies

Chinese companies looking to expand into the Singapore market, take note!

In 2024, Singapore's salary market quietly revealed many new signals: nearly 80% of companies raised salaries, with the salary increase for entry-level employees outpacing that of management, and some industries seeing salary increases of over 8% in a year... These trends not only affect the wallets of local employees, but also reveal the talent retention secrets for Chinese companies going global.

Today, we'll use a set of data to reveal the truth about salaries in Singapore, helping your company plan compensation in advance.

Overall salaries: Nominally increased, but purchasing power is more real!

In 2024, the salary situation for Singaporean employees showed two positive trends:

Nominal total wages (including employer CPF contributions) increased by 5.6%, roughly the same as the 5.2% increase in 2023, maintaining a stable growth level. After adjusting for inflation, real wages grew by 3.2%, a significant increase from 0.4% in 2023.

This means that employees' income has not only increased in amount, but their actual purchasing power has also been enhanced. This situation benefits from the easing of inflationary pressures. For companies, reasonable salary increases can meet employee needs without creating excessive cost burdens, thus forming a virtuous cycle.

Companies are raising salaries! 78% of companies have joined the salary increase wave

In 2024, Singaporean companies showed a positive trend in salary adjustments, as detailed below:

• 78.3% of companies have raised employee wages, a significant increase from 65.6% in 2023, reflecting an overall improvement in corporate profitability.
• Only 3.2% of companies have implemented salary reduction measures, a significant decrease compared to 6.5% in 2023.
• 18.5% of companies maintained their wage levels unchanged.

This data reflects the strong economic foundation of Singapore, with most companies being highly profitable and willing to raise employee salaries.

Which job level saw the biggest increase?

In 2024, salaries for employees at all levels in Singapore increased, exhibiting certain structural characteristics:

Salaries for entry-level employees (RAF) increased by 5.8%, and those for junior management increased by 5.6%, both slightly higher than the 5.1% increase for senior management. This situation, to some extent, helps alleviate the cost of living pressure on lower-level employees.

Driven by policies such as local qualified wage increases and progressive wage models (PWM), the salaries of low-income employees have increased, and because this expenditure accounts for a very small percentage of the company's total costs, it has not had a significant impact on the company's cost competitiveness.

Different industries: These sectors saw the most significant growth.

Wages increased across all industries, but the magnitude of the increases varied significantly.

Comparatively, wholesale trade (4.2%) and food and beverage services (4.8%) saw lower growth rates, especially in the manufacturing sector, which is affected by geopolitics and may face limited growth in the future.

Salary tips for Chinese companies going global

• The key characteristics of Singapore's salaries in 2024 are: overall increase, relatively warmer wages at the grassroots level, and industry differentiation.
• For working people, choosing the right industry and job can lead to a more significant increase in income.
• 对企业来说，市场情况，薪酬调整，既能留住人，又能控好成本。

The above content is from the Singapore Ministry of Manpower (MOM).