Chart of the Day: Salary in Singapore expected to rise by 4.7% in 2023

This is coming from a 4.6% median salary increase in 2022.

This chart from global professional services firm AON showed that the median salary increase in Singapore is expected to increase by 4.7% in 2023, slightly higher than the 4.6% increase in 2022.

Across Southeast Asia, Singapore’s media salary increase is the lowest. Salary in Vietnam is expected to increase the most by 7.9% on average across industries, followed by Indonesia (6.8%), the Philippines (6%), and Malaysia and Thailand which are both at 5.1%.

Aside from inflation, AON said the supply and demand in the talent market is one of the drivers of the salary increase as high attrition rates in the region compel firms to rely on compensation measures to address hiring and retention challenges.

READ MORE: Did the salary hike keep up with inflation?

Rahul Chawla, partner and head of Human Capital Solutions for Southeast Asia at Aon, said organisations should remain to stay agile as they rethink their pay principles. Businesses should also focus their strategies around long-term drivers of pay and performance by implementing changes in a phased manner to maximise pay effectiveness.

“In addition, companies must define their 2023 salary increase approach in the context of the competitiveness of their current salary levels and employee value proposition,” Chawla added. 

“Companies that adopt a skill-based compensation programme will help ensure they can continue to build future skills for their organisation's resilient workforce."