Salaries in Singapore to rise in 2024 despite inflation woes

Employees in Singapore are anticipated to receive a salary increase of 4% in nominal terms in 2024, mirroring the rate in 2023, according to ECA International, an organisation providing information, software, and expertise for organisations across the world.

The recent Salary Trends Survey 2023/2024 showed that real salary growth in Singapore is projected to reach 0.5% in 2024, marking a recovery from the 1.5% decline in real terms experienced in 2023.

This decline was also discussed in Parliament, pegging it at a falling rate of 4.5% in the first half of 2023 in comparison with the first half of 2022. This decline, said Zaqy Mohamad, Senior Minister of State for Manpower in Parliament, was due to elevated inflation and a weaker economic outlook. 

“Singapore was expected to see a return to real salary growth in 2023,” explained Mark Harrison, General Manager, Asia for ECA International. “However, as a relatively high rate of inflation persisted, employees in Singapore are worse off this year in real terms than they were in 2022. Looking forward to next year, it is expected that Singapore will see a return to real salary growth.”

Due to “significantly” dampened inflation, real wages grew slowly by 0.4% last year. Singapore’s core inflation rose to 5.5% year-on-year in January, the highest since November 2008, and has eased to 3% this year in September, reported CNA.

READ MORE: Employers in Singapore prepare salary raise to attract and retain talent

The government expects inflation to moderate for the rest of the year despite the uncertainty of Singapore’s economic outlook, said Zaqy.  With that, the minister mentioned that the impact of inflation on wages was the reason for the government announcing a S$1.1 billion (US$810.9 million) cost-of-living support package in September. Other schemes meant to sustain and encourage income growth include career conversion programmes by Workforce Singapore and career health initiatives.