News: High inflation to cut down real pay increase in Singapore

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High inflation to cut down real pay increase in Singapore

According to a poll by ECA International, Singapore workers will get 2.6 percent real pay increase next year, down from 2.9 percent in 2018.
High inflation to cut down real pay increase in Singapore

The annual poll by ECA International revealed that employers in Singapore are prepared to increase wages by about 2.6 percent in 2019 but higher inflation is diminishing real-term pay awards.

The poll results suggest that higher inflation is likely to trim the average real pay increase in Singapore to 2.6 percent in 2019. The figure is down from 2.9 percent this year. While the projected pay rise in Singapore is lower than the Asia-Pacific average increase of 2.7 percent but it will still continue to be higher than those in Hong Kong and Japan. Hong Kong real salary increase will amount to 1.9 percent after deducting for inflation. This is higher than the 1.8 percent increase in 2018.

India was top in Asia and worldwide, with an expected real salary increase of 5.1 percent in 2019. It was followed by Vietnam and Indonesia, with mainland China and Thailand coming in joint fourth in both Asia and worldwide rankings. China is expected to report a real salary increase of 3.8 percent in 2019.

According to another report by Mercer in its Asia-Pacific salary forecast tips overall pay in Singapore to rise 3.8 percent in real terms, with the life science and technology (4 percent) sectors projected to see the biggest jump in salary.

Pay in most sectors in Singapore is expected to increase except for real estate, banking, and lifestyle retail sectors, according to the professional services firm.

Topics: Compensation & Benefits

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