More employees in Singapore received wage increases in 2021
Total wage growth in Singapore, including employer Central Provident Fund (CPF) contributions among resident employees who have been with the same employer for at least one year, was 3.9% in 2021.
According to Singapore’s Manpower Ministry (MOM), the strong recovery of Singapore’s economy and a tight labour market promoted more employers to raise their employees’ wages in 2021, following a period of wage moderation in 2020.
“As a result, more employees received wage increases last year, and wages also grew at a faster pace than in 2020.”
While 2021’s total wage growth rebounded to 2019 levels, it was lower than 2010, suggesting that employers may have been “more cautious given the longer tail” of the pandemic, said MOM.
Global inflation also played a role in ensuring that real wage growth came in at 1.6% in 2021, only slightly above the 1.4% registered in 2020, and less than half of the 3.3% in 2019.
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This year, MOM expects the tight labour market to support continued nominal wage growth but cautioned that global conflicts and protracted global supply disruptions could moderate demand and nominal wage growth.
With recent shocks to the global supply chain, inflation is projected to stay elevated and dampen real wage growth this year, MOM added.