According to ECA International that specialises in global businesses, Singaporean workers expect a nominal pay rise of 4% in 2024. This salary rise is in line with the rate in 2023.
The most recent wage Trends Survey 2023/2024 showed real wage growth in Singapore. It is expected to rebound from the 1.5% real terms fall in 2023 to reach 0.5% in 2024.
Parliament discussed the reduction that is estimated to decline by 4.5% in H1 2023 compared to H1 2022. According to Zaqy Mohamad, Senior Minister of State for Manpower in Parliament, higher prices and a bleaker economic picture are to blame for this reduction.
“Real salary growth was expected to return to Singapore in 2023,” said Mark Harrison, General Manager of ECA International’s Asia division. However, as there has been a persistent rate of inflation, employees’ actual income has decreased from 2022 to current year. It is anticipated that Singapore would experience real pay increase again in the upcoming year.
Real earnings increased by 0.4% in the prior year despite “significantly” lower inflation. As for CNA, Singapore’s core inflation reached its highest point since November 2008 in January. It rose to 5.5% yearly, before declining to 3% in September of the same year.
Despite the uncertainties surrounding Singapore’s economic outlook, Zaqy stated that the government anticipates inflation to decline for the remainder of the year. The minister continued by stating that the government’s announcement of a S$1.1 billion (US$810.9 million) cost-of-living assistance package in September was motivated by the effect of inflation on salaries. Career health initiatives and Workforce Singapore’s career conversion workshops are two other projects designed to maintain and promote income development.
