How Much Salary Increase Should You Expect Each Year in Singapore?

CareerSeptember 01, 2025 09:00

For many professionals in Singapore, one of the biggest career questions is: “How much should my salary increase each year?” While every industry, company, and role is different, having a benchmark helps you evaluate if you’re being compensated fairly and plan for your financial future. 

This guide breaks down the latest data from the Ministry of Manpower (MOM), salary surveys, and industry insights to help you understand what to expect in terms of yearly increments.

1. What the Data Says: Singapore’s Wage Growth Trends

According to the MOM Labour Market Report, Singapore’s nominal median monthly income from work (including employer CPF contributions) grew by 4.2% in 2023, compared to 2–3% growth in pre-pandemic years. In 2024, wage growth moderated slightly but remained positive, reflecting employers’ caution amid global economic headwinds.

Over the past decade, annual wage increases in Singapore have typically ranged between 3% and 5% for most workers, with higher growth during boom years and slower increments during downturns. This aligns with global benchmarks for developed economies.

2. How Salary Increments Differ by Industry

Not all sectors in Singapore grow at the same pace. Based on MOM and industry salary reports:

  • High Growth Sectors (4–6% yearly increases)
    Technology (AI, data science, cybersecurity), healthcare, green jobs, and logistics show stronger increments due to talent shortages.
  • Moderate Growth Sectors (3–4%)
    Banking & finance, professional services, manufacturing, and education typically see steady, predictable increments.
  • Low Growth Sectors (1–3%)
    Hospitality, F&B, and retail may see smaller annual increments, often tied closely to business performance and demand cycles.

3. Factors That Influence Your Salary Increase

Your yearly increment depends not only on your industry but also on:

  • Company Performance: Profitable years generally translate to stronger increments and bonuses.
  • Job Role & Level: Entry-level roles may see higher percentage increases, while senior roles often get larger absolute dollar increments.
  • Skills & Demand: Professionals with in-demand skills (AI, cloud computing, data analytics, sustainability expertise) can command above-market increments.
  • Economic Conditions: Inflation, global trade conditions, and Singapore’s GDP growth all influence annual salary adjustments.

4. What Surveys Reveal About Salary Expectations

Recent HR surveys show that:

  • 70% of Singapore employers plan to give salary increments in 2025, with an average of 4–4.5% across industries.
  • Employers are focusing increments on critical talent and high performers, while across-the-board increments are becoming less common.
  • Some companies are offering lump-sum bonuses or allowances instead of higher annual increments, especially in cost-sensitive sectors.

5. How to Benchmark Your Salary

To know if you’re on track:

  • Check MOM’s annual wage data for your industry.
  • Refer to reputable salary surveys.
  • Compare with job listings on platforms to gauge current market rates.
  • Speak with recruiters who have access to up-to-date salary insights across industries.

6. What You Can Do If Your Salary Growth Feels Stagnant

  • Upskill: Tap into SkillsFuture credits to gain certifications that raise your value.
  • Negotiate During Reviews: Use data to back your case, citing industry benchmarks.
  • Consider a Job Move: MOM data shows job movers in Singapore often enjoy increments of 10–15%, compared to 3–5% for stayers.
  • Track Total Compensation: Don’t forget benefits, bonuses, and allowances, which often add 10–20% to your package.

Frequently Asked Questions (FAQ)

Q1: What is the average annual salary increment in Singapore?
Around 3–5% per year, based on MOM data and salary surveys.

Q2: Which industries in Singapore offer the highest salary growth?
Tech, healthcare, green jobs, and logistics typically offer the strongest annual increments.

Q3: Is it better to stay with one company or move for higher pay?
Job movers often secure 10–15% increments, while stayers average 3–5%. But staying can bring stability, bonuses, and long-term promotion opportunities.

Q4: How can I increase my chances of a higher increment?
Focus on in-demand skills, demonstrate measurable impact, and align with business priorities.

 

Want to benchmark your salary and explore higher-paying opportunities?
Submit your profile here.

Need insights on competitive pay to retain your best talent?
Connect with us for salary benchmarking and workforce strategies.

 

 

Disclaimer:

The information provided in our blog articles is intended for general informational purposes only. It is not a substitute for professional advice and should not be relied upon as such. 

While we strive to provide accurate and up-to-date information, the ever-evolving nature of certain topics may result in content becoming outdated or inaccurate over time. Therefore, we recommend consulting with qualified professionals or experts in the respective fields for specific advice or guidance. Any actions taken based on the information contained in our blog articles are solely at the reader's discretion and risk. We do not assume any responsibility or liability for any loss, damage, or adverse consequences incurred as a result of such actions.

We may occasionally provide links to external websites or resources for further information or reference. These links are provided for convenience and do not imply endorsement or responsibility for the content or accuracy of these external sources. Our blog articles may also include personal opinions, views, or interpretations of the authors, which do not necessarily reflect the views of our organisation as a whole. We encourage readers to verify the accuracy and relevance of information presented in our blog articles and to seek professional advice when needed. Your use of this website and its content constitutes acceptance of this disclaimer.

 

References

Related Post