SINGAPORE: Employers in the city-state’s energy and utilities sector are poised to offer the most generous bonuses as the country heads into 2025, with all surveyed companies planning to provide at least one month or more in bonus payouts, according to a recent survey by recruitment agency ManpowerGroup published by the Business Times.
The survey, released Monday (Dec 2), highlights a broader trend across Singapore’s job market, with a significant rise in both salary increases and bonus distributions.
Among the 525 employers surveyed, 89 per cent of companies plan to offer bonuses averaging more than one month’s salary—an increase from 84 per cent last year.
This trend is particularly notable in the energy and utilities sector, where compensation packages are expected to be the most lucrative.
Transport, logistics, and automotive sectors lead in salary increases
Meanwhile, companies in the transport, logistics, and automotive sectors are leading the way in terms of salary increments.
A striking 91 per cent of employers in these industries plan to raise wages by 3 per cent or more in 2024 and 2025, reflecting a commitment to staying competitive in a challenging labour market.
The survey also revealed that 35 per cent of employers intend to offer bonuses between one and one-and-a-half months of salary, while 12 per cent plan to award more than one-and-a-half months.
These figures represent increases of 8 and 5 percentage points, respectively, compared to the previous year.
Wage increases expected to continue rising
When it comes to wage growth, a strong majority—82 per cent—of employers anticipate raising salaries by at least 3 per cent, irrespective of factors like industry performance, economic conditions, or individual employee performance.
Notably, larger pay increases are also on the rise: 20 per cent of employers plan to hike salaries by between 5 and 7 per cent, while 6 per cent expect raises exceeding 7 per cent.
These figures mark an increase of one and three percentage points, respectively, compared to last year.
Adapting to economic challenges
Linda Teo, Country Manager of ManpowerGroup Singapore, commented on the findings, attributing the rise in bonuses and salary increments to higher inflation and the ongoing economic uncertainty.
“Employers are adjusting their compensation strategies to help employees cope with the higher cost of living while also remaining competitive in attracting and retaining talent,” Teo said.
“Despite global economic uncertainty, many companies are still awarding bonuses as a way to recognize the hard work and dedication of their employees.”
As Singapore approaches 2025, the data signals a continued effort from employers to provide financial support and maintain morale in the face of rising living costs and global economic challenges.