Chart of the Day: 90% of firms link wage hikes to overall business performance

Fewer firms are basing it on individual performances.

According to this chart from the Ministry of Manpower (MOM), more firms are determining workers' wage increases by the overall performance of the business.

In 2016, the proportion of firms considering their overall performance went up to 90% from 87.5%.

On the other hand, whilst individual performance still is the best indicator for wage hikes, the proportion of firms using this metric fell from 94.1% in 2015 to 91.9% in 2016.

"The majority of establishments cited establishment and employee performance as determinants of wage increases and bonuses in 2016. Comparing 2016 with 2015, the proportion of establishments which cited establishment performance and market conditions rose. More establishments also indicated benefits from government support as a determinant," MOM said