Salaries to increase anew in 2023, says 7 in 10 employers

In 2022, 61% of employers increased salaries to retain their existing staff.

More than seven in 10 employers (75%) in Singapore believe salaries will increase anew in 2023 in their respective sectors, data from Morgan McKinley’s salary guide revealed.

This is likely because over half of employees (51%) are expecting their salaries to increase, whilst some 65% expect some form of bonus. 

According to the report, “higher salaries” are the primary reason for employees to switch companies.

Whilst many employers believe that salaries will increase, only 33% plan to adjust base salaries across all teams in 2023.

Last year, 61% of employers increased salaries to retain their existing staff.

According to Gurj Sandhu, managing director of Morgan McKinley Singapore, increases this year will “not likely be as significant as they were in 2022.”

“With a level of economic uncertainty impacting global markets, recruitment is likely to be more subdued this year, with companies and professionals focusing more on stability as opposed to growth. We anticipate that, as companies watch their headcount and costs, short-term contract hiring will be more prevalent - we are already seeing a rise of flexible and contract resources,” Sandhu said.

“As a result, there will be a slight recalibration of salaries,” the expert added.

Apart from a pay hike, businesses (65%) also plan to hire new permanent or contract employees in the next six months.