Inflation expected to ease, 4% salary increments to come in 2024

SINGAPORE: According to recent forecasts from talent firms, workers can expect salary increments of around 4 per cent in 2024.

Inflation is expected to ease, and real wage growth is expected in 2024 despite a decline in 2023. Consultancy firm Mercer collected data from 1,106 organisations across 18 industries in Singapore and predicted that wage increases in the lifestyle retail and consumer goods sectors will likely pick up from 2023. Most industries are forecasted to see a 4.2 per cent increase, except for the high-tech sector and logistics industry which are likely to see pay rises of 4.1 and 4 per cent respectively.

According to the Straits Times, the top three sectors for projected wage growth are retail and e-commerce, energy and tech. Consulting and professional services, biotechnology and pharmaceutical, and gaming sectors are all trending below the overall figure. Singapore’s median salary increment of 4.2 per cent across all industries polled falls below the Asia average of 5.2 per cent.

According to preliminary full-year labour force data by the Ministry of Manpower, which employment consultancy ECA International tracked, it is projected that nominal pay is to rise by 4 per cent in 2024. The firm also expects a return to real salary growth at 0.5 per cent in 2024, unlike the 1.5 per cent decline in 2023.

A report by global professional services firm Aon plc states that the median salary in Singapore will rise by 4.0%, the same level of increase in 2023. Aon reported that across SEA, particularly in Singapore, Malaysia, and the Philippines, more than half of the roles have had salary increases outrun inflation. The report added that the technology sector will likely have the highest increase in median salary at 4.5%.

According to the Manpower Ministry, income from employment is a key indicator of economic well-being. The gross monthly income from work is the widest measure of income from employment, covering both employees and the self-employed. For the income of a typical worker, look at the median gross monthly income. This is the income in the middle after the workers are ranked by their income.

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