82% of employers surveyed in Singapore are planning for salary increases of 3% or more in 2024/2025

Among the respondents, 20% expect to increase salaries by 5-7% in 2024/2025, while 6% plan to increase salaries by more than 7%.

A new survey by ManpowerGroup presents a positive forecast for employee compensation in Singapore, as employers prepare for larger bonuses and salary increments in the 2024/2025 period, despite economic uncertainties. Based on responses from 525 companies, the survey reveals that 89% expect to offer bonuses over one month, a 5% rise from the previous year.

Additionally, 82% of employers are planning for salary increases of 3% or more, independent of industry, company performance, economic outlook, or individual assessment.

Linda Teo, Country Manager, ManpowerGroup Singapore, commented: "Amid higher inflation, employers are calibrating their compensation strategy to help employees cope with the higher cost of living as well as to remain competitive in attracting and retaining talent.

"Even while the global economy remains uncertain, many companies are still awarding bonuses to acknowledge employees' efforts throughout the year."

According to the survey, 35% of employers intend to provide bonuses of one to one and a half months in 2024/2025, while 12% foresee delivering bonuses exceeding one and a half months, up by 8% and 5% respectively compared to the last period.

Meanwhile, fewer employers are awarding smaller bonuses of one month or less. In particular, 42% of employers surveyed intend to award one and a half months of bonus, while 11% report they will be awarding bonuses of less than one month — a decrease of 8% and 5% respectively when compared to 2023/2024.

Breaking the data down by sector, the energy & utilities sector topped the list with 100% of employers surveyed planning to give out bonuses of at least one month, followed by those in transport, logistics, and automotive sector (98%), and the communication services sector (94%).

Salary increment plans

The report also revealed plans for salary increment in the year ahead. Among the respondents, 20% expect to increase salaries by between 5% to 7% in 2024/2025, while 6% plan to increase salaries by more than 7% — an increase of 1% and 3% when compared to 2023/2024.

At the same time, fewer employers are giving smaller increments of less than 5%. Particularly, 18% intend to increase salaries by less than 3% in 2024/2025, while 56% of employers look to increase salaries by between 3% to 5% — a decrease of 4% and 1% respectively when compared to 2023/2024.

Looking at the data by company size, among all types of companies surveyed, medium-sized companies (62%) have indicated the highest possibility of giving out increments of above 3%, but less than 5%. This was followed by micro companies (60%), large and very large companies (58% each), small companies (57%), and large enterprises (47%).

Further indicators are as follow:

Finally, by sector, employers in the transport, logistics, and automotive sector expect to give out the most increments going into 2025, with 91% of those surveyed planning to increase salaries by 3% or more in 2024/2025.

This was followed by the communication services sector (90%), and the healthcare and life sciences sector (87%).

Photo & infographics: ManpowerGroup