Salaries increased in 2023, but few companies plan on raising wages

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Companies may take a cautious stance regarding wage increases due to the current uncertain business environment, MOM said.

SINGAPORE: Earlier this week, the Ministry of Manpower said that wages in Singapore increased by 0.4 per cent last year, with inflation taken into account. However, only 20 per cent of companies are planning on raising salaries, theMOM said on Tuesday that wage growth had slowed from 6.5 per cent in 2022 to 5.2 per cent in 2023. The real growth of wages last year was similar to the year before, after accounting for inflation.

The ministry also noted that last year, all types of employees across all industries experienced wage growth. MOM noted that the economy is expected to improve this year, with a continued strong demand for PMET workers in several sectors including Information & Communications, Financial Services, Professional Services, and Health and Social Services

With the tight job market and a greater number of vacant positions than jobseekers, there could be higher wage growth in these sectors this year than in 2023.MOM also noted, however, that companies may take a cautious stance regarding wage increases because of the current uncertain business environment.

“Still-rising labor costs and the improving growth outlook further support our long-held view that underlying inflation pressures will likely persist and that core inflation will remain sticky in the coming months,” Nomurashowed that the administrative and support services sector saw higher wage growth than others last year. It noted that more companies were less profitable last year than the previous one and that while 72.

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