Total wage growth in Singapore continued to rise in 2023, albeit at a more moderate pace when compared to 2022, official data showed.
According to the latest statement by the country's Ministry of Manpower, the wage growth in Singapore had slowed from 6.5 percent in 2022 to 5.2 percent in 2023, although it remained higher than the range seen in non-recessionary years.
Total wage growth continues to rise in Singapore
The report revealed that the rise in wage growth could be attributed to the proportion of profitable establishments staying high and a majority of establishments continuing to provide salary increases to their employees.
"Nominal total wages (including employer CPF contributions) of full-time resident5 employees who had been with the same employer for at least one year continued to grow," said the ministry in the statement.
It added: "After accounting for inflation, which eased in 2023 from 2022, real wages grew by 0.4 percent in 2023, similar to the increase in 2022."
Establishments were profitable in 2023
The report highlighted that the proportion of profitable establishments remained high in 2023 at 82.1 percent.
However, reflecting the slower economic growth, more establishments reported that they were less profitable than in 2022. As a result, the proportion of establishments which gave wage increases to their employees declined from 72.2 percent in 2022 to 65.6 percent in 2023, the ministry noted in the statement.
According to the report, companies which cut the wages of their employees remained the minority at 6.5 percent, while 27.9 percent of the firms hold the wages of their employees constant.
The ministry further highlighted that all industries in Singapore witnessed wage growth in 2023.
The statement went on and said that Singapore economy is expected to improve in 2024.
"The job market remains tight, and vacancies continue to outnumber job seekers. There continues to be strong demand for PMET workers in industries such as Information & Communications, Financial Services, Professional Services and Health & Social Services," said the ministry.
It added: "These developments could result in higher wage growth in these sectors in 2024 compared to 2023. However, with an uncertain business environment, establishments might adopt a cautious stance with respect to wage increases."
