SINGAPORE: Employees in the city-state can look forward to salary increases of 2 to 5 per cent on average in 2025, according to recent surveys by human resources (HR) firms.
However, the outlook varies across different sectors, with some industries seeing more significant raises than others.
In a report from The Star, HR experts note that companies are taking a cautious approach to salary budgets amid ongoing economic uncertainties.
Industries such as wholesale trade, transportation, storage, and manufacturing, particularly those tied to international trade, are expected to proceed cautiously due to the uncertain impacts of US tariffs under President-elect Donald Trump.
However, sectors like healthcare and technology are expected to see above-average pay increases, with significant demand for professionals in these fields.
Persolkelly, a recruitment firm, pointed out that healthcare professionals are benefiting from post-pandemic demands, with the sector seeing substantial salary hikes.
Similarly, tech professionals specializing in digital transformation and cybersecurity are in high demand, leading to robust salary growth. Some of the largest salary adjustments are expected for special education professionals.
Special education teachers and assistants will see salary increases of up to 15 per cent over the next two years as authorities aim to enhance the quality of education and support for students with special needs.
In strategic and niche roles, HR and business support professionals could experience salary hikes of 10 to 15 per cent, particularly in industries requiring specialized expertise.
However, salary increases for other roles may be relatively flat as companies place a heightened focus on retaining existing talent. For non-executive workers, such as sales promoters and general labourers, salary increases are also anticipated.
Data from Jobstreet Express shows that sales promoters experienced the highest median salary rise of 32 per cent in 2024, with general workers closely following at 30 per cent.
Jobseekers who switch jobs may see even higher salary hikes, with Robert Walters projecting 10 to 15 per cent increases for professionals in fields like sales, marketing, and accounting.
Despite the economic uncertainties, many companies also plan larger bonus payouts in 2025.
ManpowerGroup found that 35 per cent of employers plan to offer bonuses of between one and one-and-a-half months’ salary, with 12 per cent intending to exceed that.
The energy and utilities sector stands out, with 100 per cent of employers planning bonuses of at least one month’s salary.
Linda Teo, country manager of ManpowerGroup Singapore, emphasized that companies are adjusting their compensation strategies to help employees cope with higher living costs while remaining competitive in attracting and retaining talent.