SEA Pay Outlook 2026 vs Singapore: Benchmarks for HR

ManagementDecember 01, 2025 09:00

Regional salary comparison chart showing Singapore vs SEA markets for 2026.

This article is written in English for readers in Singapore. Chinese and Japanese translations are available on our website. 

Pay Trends in 2026 — How Singapore Compares with Southeast Asia

As companies finalise their 2026 salary budgets, Singapore employers are taking a more cautious but data-driven approach. According to Aon’s 2025 Salary Increase and Turnover Study, average pay rises across Southeast Asia are projected at 4.8%, down slightly from 5% in 2025, reflecting moderated optimism amid global economic headwinds.

Singapore’s projected salary increase stands at 4.0%, compared to 5.2% in Vietnam, 5.0% in Indonesia, 4.7% in Malaysia, and 4.5% in Thailand. This positions Singapore as one of the more conservative markets in the region, largely due to higher base pay, automation-driven productivity, and slowing headcount growth in professional services and tech.

Key Regional Salary Benchmarks for 2026

Country

2026 Projected Salary Increase

 2025 Actual Increase

Top-Growth Sectors 2026
Singapore 4.0%

4.3%

Tech, Banking, Life Sciences
Vietnam

5.2%

 5.5%

Manufacturing, IT, Retail
Malaysia 4.7%

4.8%

Shared Services, Energy, Healthcare
Thailand

4.5%

4.6%

FMCG, Hospitality, Engineering
Indonesia 5.0% 5.1%

E-commerce, Logistics, Financial Services
Philippines

5.4%

 5.5%

BPO, Tech, Financial Services

Source: Aon SEA Salary Increase and Turnover Study 2025 (projected for 2026)

Singapore: Balancing High Wages with Workforce Efficiency

While Singapore’s overall salary growth is more modest, it continues to rank among the highest-paying economies in Southeast Asia. According to MOM’s 2025 Labour Market Report, median monthly income (including employer CPF) rose from S$5,197 in 2024 to S$5,373 in 2025, with professional and tech roles seeing the steepest increases.

However, the Ministry noted that real wage growth has slowed to around 3.0%, mirroring the global cooling trend. Employers are therefore emphasising performance-based rewards and skills-linked pay over across-the-board raises.

Strategic Shifts for HR and Business Leaders

1️⃣ Reward Performance, Not Inflation

Instead of blanket pay hikes, companies are differentiating top talent with performance bonuses and equity-linked incentives. This aligns with Singapore’s national push for productivity-driven wage growth.

2️⃣ Strengthen Non-Monetary Benefits

Hybrid work support, wellness budgets, and career development stipends are emerging as top retention tools. Reeracoen’s APAC Workforce Whitepaper 2025 found that 7 in 10 Singapore professionals value flexibility and purpose as much as salary.

3️⃣Benchmark Regularly Against Regional Markets

For companies with cross-border operations, aligning compensation structures across SEA ensures internal equity and competitive hiring. Industries with regional HQs in Singapore (such as logistics, semiconductors, and fintech) now use blended pay models combining Singapore and regional benchmarks.

How Reeracoen Helps Companies Stay Competitive

At Reeracoen Singapore, we provide:

We help HR leaders stay informed and agile with accurate data to attract, reward, and retain top talent in Singapore and across Southeast Asia.

 

💡 FAQ — Salary Planning 2026

Q1. Are salary increases in Singapore lower than regional averages?

Yes. At 4.0%, Singapore’s projected increase is below the SEA average of 4.8%, due to its mature economy and already high wage base.

Q2. Which sectors will see the biggest pay rises?

Technology, life sciences, and banking are expected to outpace the national average with 5–6% increments for key digital and compliance roles.

Q3. How can HR prepare for 2026?

Conduct salary benchmarking early, prioritise skill-based pay, and communicate transparent performance metrics to sustain morale.

Q4. Should smaller firms match MNC benchmarks?

Not necessarily. SMEs can compete with career growth, flexibility, and personalised recognition instead of base salary alone.

 

💼 For Employers: Book a Salary Benchmarking Consultation

👩‍💼 For Jobseekers: Compare Market Salaries & Submit Your CV

 

✅ Final Author Credit
By Valerie Ong (Regional Marketing Manager)
Published by Reeracoen Singapore — a leading recruitment agency in APAC.

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