Employees in Singapore can expect to be paid higher salaries in 2023

Despite a decline in net employment, organisations in Singapore are ready to offer increments and bonuses to attract and retain talent.
By: | January 6, 2023
Topics: Compensation and Benefits | Employee Experience | News | Singapore

In Singapore, employers are slightly less optimistic about hiring due to concerns about a slowdown in the economy, although they are still willing to pay more to attract and retain employees to support growth.

According to a survey of more than 500 companies by Manpower Group, most employees can expect salary increases of 3% to less than 5%, and nine out of 10 employers plan to offer bonuses of one month or more to their employees.

Employers also reported a net employment outlook of 33% in Q1’2023, a decline for the second straight quarter after a record high of 40% in Q3’2022. This is down 3 percentage points from the previous quarter, but up 19 percentage points from Q1’2022. The net employment outlook is a measure of hiring optimism, defined as the percentage of organisations surveyed that intend to take on new employees minus the percentage that intend to downsize.

READ: Growth of Singapore’s employment market expected to slow down

The survey further revealed that employers from nine sectors polled reported a net positive outlook, with those in finance and real estate, energy and utilities, and consumer goods and services driving the hiring demand, posting net positive outlook figures of between 39% and 57%.

Linda Teo, Country Manager of ManpowerGroup Singapore, said, “With inflation increasing the costs of living, candidates are increasingly prioritising salary when considering job offers. Companies are increasing their compensation packages to attract and retain employees, especially in sectors where there is a high demand for manpower or high turnover,” she concluded, reported The Straits Times.