Workers in Singapore can expect higher salaries this year, with increases likely averaging 3%, according to research from Hays.

The research found that 46% of employers in Singapore said they expect to increase salaries by up to 3% while 29% have plans for increases between 3-6%. This is higher than real salary changes reported for the twelve months previous, 37% and 25% respectively.

Furthermore, 15% of employers expect salaries to remain unchanged, far fewer than predictions this time last year, when 42% of employers said that they had planned for salaries to stay the same.

“Companies in Singapore are beginning to bounce back after two turbulent years as pandemic recovery stabilises,” says Kirsty Hulston, Regional Director, Hays Singapore. “With 2022 intended to be a year of recouping lost growth opportunities, increasing salaries is a strategic move to improve staff retention and reduce turnover.”

Data from the survey indicates that workers in Singapore are expecting salary increments higher than what employers are ready to give, with 51% expecting increases up to 6% (Breakdown: 26% for increases up to 3%, 25% for increases between 3-6%). Meanwhile, 13% expect a salary increase between 6-10%, and 16% expect their salary to increase by over 10%.

In contrast, only 5% of employers planned on increasing salaries by 6-10%, and 5% to raise salaries by over 10%. This is lower than the real salary changes reported for the last twelve months, which were 7% and 4% respectively. 

“There is an observable disparity between the salary expectations of employees and what companies are prepared to meet,” Hulston said. “Given the skills shortages and rising competition for talent, companies that intend to prioritise retention in the coming months will need to manage this expectation gap with care.”

Providing clear career pathways, better benefits, and improved flexibility and work-life balance could prove effective in bridging the salary expectation gap,” Hulston added.