Did the salary hike keep up with inflation?
Inflation offset salaries by 1.7% in real terms this year.
Employees in the Lion City may have received a salary increase in 2022 but minus the rate of inflation, it declined by almost 2%, ECA International’s annual Salary Trends showed.
This year, Singaporean workers got a pay hike of 3.8% in nominal terms and the rate of growth is seen to increase further to 4% next year.
But inflation in the market is 5.5%, this year similar to the average rate of inflation in Asia Pacific and is projected to decrease to 3% in 2023.
A silver lining for Singapore’s workforce is that it can see a return to real salary growth next year but it will be “modest,” Lee Quane, Regional Director – Asia at ECA International said.
“Lower-income and more vulnerable individuals will also benefit in the meantime from the government’s proactive support measures aimed at shielding its citizens from the impact of inflation,” Quane added.
The annual Salary Trends report evaluates current and projected wage hikes in more than 60 markets and cities across the world.
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