According to the most recent Total Remuneration Survey (TRS) from Mercer, salaries in Singapore are expected to rise by 4.1% in 2025. The highest-paying sectors are real estate, consumer goods, retail, banking, and financial services.
According to the poll, 17.5% of organizations intend to increase their workforce in the upcoming year, indicating cautious optimism despite global economic concerns.
The results, obtained from more than 1,100 organizations in industries like manufacturing, education, life sciences, and technology, offer a thorough understanding of Singapore’s employment situation. Industries, including aerospace, construction, and energy, forecast a more moderate rise of 3.9% to 4.2%. In comparison, the finance and real estate sectors are expected to witness up to 4.5% compensation increases. With 3.6% to 4% increases, healthcare and education will likely follow market norms.
According to Mercer’s findings, organizations are preparing to face possible challenges by taking a calculated approach to pay increases, even though Singapore’s economy is expected to remain stable. With an emphasis on rewarding top performers and staff members who significantly contribute to organizational goals, employers are budgeting for an average 4% rise.
“Boards and senior management will adopt a more cautious approach to salary increment budgets during the upcoming annual review cycle, aiming to proactively address potential challenges in the business environment,” stated Andrea Tan, Rewards Leader at Mercer Singapore.
“We anticipate that employers will take a more strategic approach in allocating and distributing increment budgets, focusing on rewarding employees based on performance and value contribution.”
According to the poll, there is an increasing need for positions that call for expertise in strategic planning, alliance partnerships, digitalization, business continuity planning, and sales enablement. As organizations strive to stay flexible and resilient in a changing economic environment, these areas are anticipated to be crucial.
“We expect these skills to be key for organizations navigating through uncertain times, where businesses are compelled to do more with less,” Tan concluded.
