Salaries in Singapore projected to rise by 4.1% in 2025, says Mercer

Salaries across Singapore are projected to increase by 4.1% in 2025, with industries such as real estate, consumer goods, retail, and banking and financial services leading the pack, according to Mercer’s latest Total Remuneration Survey (TRS).

The survey also revealed that 17.5% of organisations plan to expand their headcount next year, signaling cautious optimism despite global economic challenges.

The findings, derived from over 1,100 organisations spanning sectors such as technology, life sciences, manufacturing, and education, provide a detailed view of Singapore’s employment landscape. While sectors like real estate and banking are expected to see salary increases of up to 4.5%, industries such as aerospace, construction, and energy anticipate more moderate growth of 3.9% to 4.2%. Healthcare and education are likely to align with market averages, with increments of 3.6% to 4%.

Despite the steady economic outlook for Singapore, Mercer’s findings indicate that organisations are preparing to navigate potential headwinds by adopting a strategic approach to salary increments. Employers are budgeting for a 4% increase on average, with a focus on rewarding top performers and employees contributing significant value to organisational goals.

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Andrea Tan, Mercer Singapore’s Rewards Leader, said, “Boards and senior management will adopt a more cautious approach to salary increment budgets during the upcoming annual review cycle, aiming to proactively address potential challenges in the business environment.”

“We anticipate that employers will take a more strategic approach in allocating and distributing increment budgets, focusing on rewarding employees based on performance and value contribution.”

The survey also highlighted growing demand for roles requiring skills in business continuity planning, alliance partnerships, strategic planning, digitalisation, and sales enablement. These areas are expected to play a critical role as organisations aim to remain agile and resilient in an evolving economic climate.

“We expect these skills to be key for organisations navigating through uncertain times, where businesses are compelled to do more with less,” Tan concluded.