MORE COMPANIES RAISED WAGES IN 2024
Nearly 80 per cent of companies gave their employees wage increases last year, up from 65.6 per cent in 2023, as most establishments were profitable.
“A majority of establishments gave the increases due to past organisational performance rather than forward-looking confidence,” MOM said.
Among companies that raised salaries in 2024, the average wage increase dipped to 6.6 per cent compared with 7.2 per cent in 2023.
For the 3.2 per cent of companies that cut wages in 2024, the size of the decrease was 3.6 per cent. In 2023, 6.5 per cent of companies cut wages by 6.2 per cent.
MOM said profitability of companies varied across industries, with real estate services, construction and wholesale trade having fewer profitable establishments, and manufacturing seeing an increase in profitable businesses.
But manufacturing and wholesale trade may have fewer profitable companies in the coming year due to global trade tensions, the ministry said.
SECTORS WITH THE BIGGEST WAGE INCREASES
Financial services, as well as the community, social and personal services sectors, saw an above-average increase in nominal wage growth last year.
The biggest increase was in administrative and support services at 8.7 per cent, largely due to the Progressive Wage Model.
Food and beverage services saw below-average increases in wages, as with wholesale trade and manufacturing, where wage increases are expected to moderate in the coming year due to geopolitical and trade tensions.
Across Singapore, the wages of rank-and-file and junior management employees grew 5.8 per cent and 5.6 per cent respectively, slightly higher than the 5.1 per cent reported for senior management.
MOM said this partly reflects efforts to offset cost-of-living pressures.
Government policies such as increases in the local qualifying salary and the implementation of the Progressive Wage Model helped to lift wages of lower-income employees, the ministry added.
“The increase in wages of lower-income employees did not have a significant impact on cost competitiveness, as they only form a very small component of total business costs,” MOM said.
