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Singapore Salary Outlook 2025: A Silver Lining for Workers Despite Economic Headwinds

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In a promising development for Singapore's workforce, the latest ManpowerGroup Salary Survey reveals that the majority of employers are planning generous compensation packages heading into 2025, despite ongoing global economic uncertainties. With substantial salary increments and bonus plans on the horizon, Singaporean workers can look forward to improved financial prospects in the coming year.

Salary Increases: A Positive Trajectory

According to the 2024/2025 Singapore Salary and Bonus Plans survey conducted by ManpowerGroup, a substantial 82% of Singapore employers plan to increase salaries by 3% or more as we move into 2025. This represents a positive shift compared to the previous year's figures and suggests growing employer confidence in the economic outlook.

Breaking down the numbers:

  • 56% of employers plan to offer salary increments between 3% and 5%
  • 20% of employers are looking at more generous increases between 5% and 7%
  • 6% of employers are prepared to offer substantial raises of 7% or more
  • Only 18% of employers plan to keep salary increases below the 3% threshold

This data points to a more favorable environment for employees compared to the 2023/2024 period, when 22% of employers kept salary increments below 3%.

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Industry-Specific Salary Prospects

Not all sectors are created equal when it comes to expected salary increases. The survey highlights significant variations across different industries:

Transport, Logistics & Automotive leads the pack with 91% of employers planning to increase salaries by 3% or more. This sector shows particularly strong growth intentions, with 51% of employers planning raises between 5% and 7%.

Communication Services follows closely, with 90% of employers planning increases of 3% or above, although most (52%) fall in the 3-5% range.

Health Care & Life Sciences and Financials & Real Estate both show strong salary growth intentions, with 86% and 87% of employers respectively planning increases of 3% or more.

The Information Technology sector appears to be more cautious, with 25% of employers planning increases below 3%, perhaps reflecting ongoing adjustments in the tech industry after recent hiring freezes and layoffs.

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Company Size Matters

Interestingly, the survey reveals that company size plays a significant role in salary increment plans:

  • Medium-sized companies (50-249 employees) appear to be the most generous, with 62% planning increments between 3-5% and another 23% planning even higher increases
  • Large enterprises (500+ employees) show the most variation, with 47% planning 3-5% increases, but also the highest percentage (20%) planning substantial 5-7% raises
  • Very large companies (1,000-4,999 employees) demonstrate the most conservative approach, with 18% planning increases below 3%

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Bonus Expectations Remain High

In addition to salary increases, the bonus outlook for 2025 appears exceptionally strong, with an impressive 89% of Singapore employers planning to hand out bonuses of at least one month or more.

The breakdown of bonus plans shows:

  • 42% of employers plan to give a one-month bonus
  • 35% plan to give between one month and one-and-a-half months
  • 12% plan to give more than one-and-a-half months
  • Only 11% plan to give less than a one-month bonus

This represents a positive shift from the 2023/2024 period, when 16% of employers gave bonuses below one month.

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Industry Champions for Bonuses

When it comes to bonus payouts, some industries stand out significantly:

Energy & Utilities takes the crown as the most generous sector, with a remarkable 100% of surveyed employers planning to give at least one-month bonuses. More impressively, 47% plan to give more than one month's bonus.

Transport, Logistics & Automotive continues its strong showing, with 98% of employers planning one-month bonuses or more, including 71% planning to exceed the one-month threshold.

Financials & Real Estate leads in the category of substantial bonuses, with 19% of employers planning to give more than one-and-a-half months' bonus.

The Information Technology sector again shows more restraint, with 18% of employers planning bonuses of less than one month.

Job prospects in Singapore positive despite economic worries: Poll | Manpower Singapore

What This Means for Singaporean Workers

For Singapore's workforce, these findings represent a significant positive indicator. Despite global economic challenges, employers appear committed to rewarding employees and maintaining competitive compensation packages. This trend suggests:

  1. Increased purchasing power: With both salaries and bonuses growing, workers should see improved financial capacity.

  2. Retention focus: The generous compensation plans likely reflect employers' efforts to retain talent in a competitive market.

  3. Sector opportunities: Workers in Transport, Logistics & Automotive, Energy & Utilities, and Communication Services may find themselves in particularly advantageous positions for compensation negotiations.

  4. Company size considerations: Mid-sized and large enterprises appear to offer the strongest compensation packages, a factor worth considering for job seekers.

ManpowerGroup Offices - Tokyo | Office Snapshots

As we approach 2025, the ManpowerGroup survey data paints an encouraging picture for Singapore's employment landscape. While economic uncertainties persist globally, Singapore employers clearly recognise the importance of competitive compensation in attracting and retaining talent.

Workers would be wise to consider not just their industry's general outlook but also company size when evaluating employment opportunities or preparing for compensation discussions. Those in industries showing the strongest growth intentions may find themselves with increased negotiating leverage.

For the Singapore economy as a whole, the planned increases in compensation suggest continued confidence among employers and potential for sustained consumer spending – both positive indicators for economic stability and growth in the coming year.

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