HR experts said companies are adopting a cautious approach to salary increment budgets in 2025. - ST
SINGAPORE: Employees in Singapore could see salary increments ranging from 2 per cent to 5 per cent on average in the coming year, though the outlook varies across sectors, according to recent salary surveys by human resources (HR) firms.
HR experts said companies are adopting a cautious approach to salary increment budgets in 2025.
“Companies are opting for targeted salary increases to navigate uncertain times,” said Cheng Wan Hua, director of talent analytics for South-east Asia at professional services firm Aon.
Aon said in a recent report that salary increase budgets in South-East Asia are expected to “inch up marginally” in 2025 compared with 2024, highlighting the demand for talent.
Aon, which surveyed more than 950 companies in Singapore and five other South-East Asian countries, found that Singapore employees are poised to receive pay rises of 4.4 per cent, lagging behind places such as Indonesia and Thailand. The highest salary increase in the region is projected at 6.7 per cent in Vietnam.
Consultancy firm Mercer similarly expects employers in Singapore to offer a 4 per cent increase in employees’ salaries.
Meanwhile, global talent firm Robert Walters said employees staying on with their current companies could see their salaries increase by 2 per cent to 5 per cent to align with inflation.
This outlook comes even as Singapore’s growth is expected to slow in 2025.
The Ministry of Trade and Industry said on Nov 22 that Singapore’s gross domestic product growth is projected to come in at 1 per cent to 3 per cent in 2025, lower than the full-year growth forecast of around 3.5 per cent for 2024.
A recent note by UOB Global Economics and Markets Research highlighted cautiousness among firms in trade-related sectors in terms of their hiring decisions for the first half of 2025.
This is observed in sectors such as wholesale trade, transportation and storage, and manufacturing, given significant uncertainties over the timing, extent and scope of US President-elect Donald Trump’s proposed tariffs.
Still, the outlook varies across industries, and there were some differences between the HR firms’ projections.
For example, Mercer, which surveyed more than 1,100 companies in Singapore, said the healthcare and education sectors are projected to remain aligned with the market, with salary increases of between 3.6 per cent and 4 per cent.
However, some HR firms forecast above-average salary increases for the technology and healthcare industries.
Recruitment firm Persolkelly, which also released a salary guide, said the healthcare industry is experiencing “significant pay increases” due to its critical role during and after the Covid-19 pandemic.
Additionally, it said the technology sector notably shows significant salary growth due to rising demand for digital transformation and cyber-security expertise.
“After factoring in inflation, professionals in both tech and healthcare sectors can anticipate moderate to strong real salary increases in 2025, potentially higher than the national average, provided inflation continues to ease,” said Persolkelly Singapore sales director Ken Tan, adding that this may include performance-based bonuses.
The firm’s report is based on data from its network of senior recruitment professionals, yearly jobs placement and jobs order records, as well as supplementary information from SkillsFuture Singapore.
Another group of workers who are expected to enjoy strong salary increases are special education classroom teachers, who are projected to receive salary increases of up to 12 per cent over the two years from 2024 to 2026, while special education teacher assistants will see their salaries rise by up to 15 per cent.
These adjustments look to ensure they are better compensated to improve the quality of education and support for students with special needs, said Persolkelly.
Among HR and business support professionals, Robert Walters found that those in strategic, niche roles could see pay rises of 10 per cent to 15 per cent. However, salary increments for those in other roles may be “relatively flat”, said the firm, adding that an increased focus on retention may impact salary increments.
Talent firm ManpowerGroup also said in its salary guide that across the sectors it surveyed, the transport, logistics and automotive sector had the largest share of employers – 91 per cent – poised to give out salary increments of 3 per cent or more.
This is followed by the communication services sector, and the healthcare and life sciences sector. The findings are based on the talent firm’s survey of 525 local employers.
As for non-executive roles, Juairi Jaafar, general manager of online jobs platform Jobstreet Express Singapore, noted that sales promoters and general workers – including warehouse packers and office administrators – will continue to be integral across industries in 2025 and should thus command strong salary increments.
He noted that sales promoters experienced the highest median salary increments of 32 per cent in the first three quarters of 2024, with general workers following closely behind at 30 per cent, based on Jobstreet Express’ data.
Salary increases for workers who switch jobs tend to be higher.
Robert Walters, which collected data from more than 300 local professionals and employers, said professionals in sales and marketing, as well as accounting and finance functions across sectors, who are looking to switch jobs in 2025 can expect salary increases of 10 per cent to 15 per cent.
Bigger bonuses still look to be on the cards in 2025 despite the uncertain economic landscape, according to ManpowerGroup.
More employers intend to pay out bonuses of more than one month’s salary, compared with the previous year.
Among those surveyed, 35 per cent are planning for bonuses of between one month and 1½ months in 2024/2025, while 12 per cent are planning for bonuses of more than 1½ months.
ManpowerGroup found that workers in the energy and utilities sector are expected to receive bigger bonus payouts going into 2025, compared with other sectors, with 100 per cent of employers surveyed planning to give out at least a month’s bonus or more.
“Amid higher inflation, employers are calibrating their compensation strategy to help employees cope with the higher cost of living, as well as to remain competitive in attracting and retaining talent,” said Linda Teo, country manager of ManpowerGroup Singapore.
“Even while the global economy remains uncertain, many companies are still awarding bonuses to acknowledge employees’ efforts throughout the year,” she added. - The Straits Times
