Employers in Singapore maintain bonus commitment

Despite a projected hiring slowdown in 2024, over 80% of employers in Singapore remain committed to providing bonuses of at least one month’s salary, according to the latest quarterly employment outlook survey by ManpowerGroup Singapore.

The survey of 525 employers revealed that 84% plan to distribute bonuses, a minor dip from 87% the previous year. The finance and real estate sector lead with 11% intending to provide bonuses exceeding 1.5 month’s salary.

In the transport, logistics, and automotive sector, 97% of employers plan bonuses of at least one month’s salary, topping the surveyed industries. Following closely are the energy and utilities sector (96%) and the healthcare and life sciences sector (91%).

The survey also noted a correlation between organisation size and bonus generosity. Larger organisations, with over 1,000 employees, are more likely to provide substantial bonuses, with 43% of very large organisations and 44% of large enterprises planning bonuses exceeding one month’s salary.

Regarding salary increments, the survey showed more than half the organisations plan to increase salaries by 3% to under 5%, down from 60% a year ago. However, 19% of employers, up from 17% the previous year, plan to raise salaries by 5% to under 7%. The energy and utilities, and healthcare and life sciences sectors are expected to lead in salary increments, reported The Straits Times.

READ MORE: Salaries in Singapore to rise in 2024 despite inflation woes

Linda Teo, Country Manager at ManpowerGroup Singapore, said, “Despite lacklustre economic conditions, many organisations continue to award bonuses to reward employees for their contributions for the year. Given the GST (goods and services tax) hike and escalating costs of living, organisations are also awarding bonuses and increasing compensation as a strategy to maintain competitiveness in talent retention and attraction.”