Fewer Singaporean workers received pay increases last year when compared to the previous year, according to the Ministry of Manpower’s report, “Report on Wage Practices 2016”.

The report shows the proportion of employees who received total wage increase declined from 77% in 2015 to 75% in 2016. Furthermore, the proportion of establishments that raised total wage in 2016 (58%) was lower than a year ago (64%).

Meanwhile, the proportion of profitable firms declined from 79% in 2015 to 76% in 2016. As the majority of firms had put in place a wage system that gave flexibility to adjust wages according to business conditions, wage increase continued to moderate. The decline in 2016 was observed across major industries. 

Among profitable companies, a bigger proportion said they had not done as well as in the year before: 40.6% in 2016 compared to 37.6% in 2015.

The report also showed that at least 90% of establishments cited establishment and employee performance as determinants of wage increases and bonuses in 2016. Comparing 2016 with 2015, the proportion of establishments which cited establishment performance and market conditions rose.

The Ministry’s report also showed that 90% of private sector employees now work in businesses that have some form of flexible wage system, the highest since 2004.