Expect pay rise of 1% to 7% next year, Latest Business News - The New Paper

Expect pay rise of 1% to 7% next year

This article is more than 12 months old

That is what workers staying in their jobs are likely to get, say experts

Workers in Singapore will likely see modest salary increases next year despite the economic slowdown this year, according to two survey reports published recently.

"Professionals staying in their jobs can expect salary increments of between 1 per cent and 7 per cent next year, while those who switch jobs can expect a 5 per cent to 15 per cent rise, said recruitment firm Robert Walters yesterday.

This is the same as the 5 per cent to 15 per cent pay increment the firm projected last year for people who switched jobs this year.

Larger increments are expected for job seekers with niche skill sets, such as in technology and transformation, banking and finance, the legal field, sales and marketing, supply chain, procurement and logistics, it said.

The Monetary Authority of Singapore (MAS) had said last month that the softening labour market is expected to dampen wage growth this year and next, compared with last year, as economic activity is likely to stay muted.

In its biannual macroeconomic review, MAS said that for the first half of this year, resident wage growth slowed to 2.8 per cent year on year, down from 3.5 per cent last year.

Hiring still continues, though. Robert Walters said top jobs for next year continue to be digital-focused. These include mobile and app developers, cyber security specialists, data scientists and data analysts.

The results, based on the firm's analysis of job placements it made this year and its interactions with clients and job seekers, also found that companies are increasingly focusing on skill sets and potential rather than specific market sector experience.

Creativity, critical thinking, the ability to build meaningful relationships and having a commercial mindset are the soft skills in demand.

Meanwhile, a separate survey by consultancy ECA International released earlier this month puts the average real salary increase next year at 3 per cent above inflation for Singapore workers staying in their roles.

This is a slight drop from the 3.3 per cent increase this year but still higher than the growth expected in regional markets such as Hong Kong, Taiwan and Japan, it said.

Mr Lee Quane, ECA International's regional director for Asia, said: ''The notably low level of inflation that Singapore has seen over the recent years, coupled with a tight labour supply and talent restrictions due to immigration constraints, implies that salary increases will remain relatively high.