Singapore – Almost half of employers expect a 3% salary increase in 2022

March 23, 2022

Singaporean workers can expect higher wages this year, with increases averaging 3%, according to Hays research.

The study found that 46% of employers in Singapore said they expect to raise wages by up to 3%, while 29% expect increases of between 3 and 6%. This is more than the actual wage changes reported for the previous twelve months, 37% and 25% respectively.

Additionally, 15% of employers expect wages to remain unchanged, significantly lower than the forecast at the same time last year, while 42% of employers said they expected wages to remain the same. same.

“Singapore businesses are starting to rebound after two turbulent years as the pandemic recovery stabilizes,” says Kirsty Hulston, Regional Director, Hays Singapore. “With 2022 destined to be a year of recovering lost growth opportunities, raising salaries is a strategic move to improve staff retention and reduce turnover.”

Survey data indicates that workers in Singapore expect higher pay rises than employers are willing to provide, with 51% expecting increases of up to 6% (Split: 26% for increases of up to 3%, 25% for increases between 3 and 6%). Meanwhile, 13% expect a salary increase between 6 and 10%, and 16% expect their salary to increase by more than 10%.

In contrast, only 5% of employers planned to increase wages by 6-10% and 5% to increase wages by more than 10%. This is less than the actual salary changes reported for the last twelve months, which were 7% and 4% respectively.

“There is an observable disparity between employee salary expectations and what companies are prepared to meet,” Hulston said. “Given skill shortages and growing competition for talent, companies that intend to prioritize retention in the coming months will need to manage this expectation gap carefully.”

Providing clear career paths, better benefits, and better flexibility and work-life balance could prove effective in closing the salary expectation gap,” Hulston added.