Guess which sector will take home the biggest pay hike next year

Analyst predicts 4.4% average pay increase.

In a report released today, Hay Group, the global management consultancy, said Singapore workers can look forward to moderate pay packets this year, on the back of strong economic growth of 3.5 to 4 percent reported by the Ministry of Trade and Industry.

Hay Group’s Market Remuneration Survey covers 531 Singapore-based companies (local and foreign-owned) from both the private and public sectors and across more than 15 sectors.

Salary increase rate at status quo as 2012

The report showed that the actual average salary increase is 4.9 percent for 2013 − same as last year’s actual average − while the average salary increase for 2014 is forecasted at 4.4 percent.

Those working in the Bank and Insurance sector can expect the highest average salary increase of 5.7 percent, followed by those working in the Oil & Gas (5.6 percent) and High Technology (5.5 percent) sectors.

Looking ahead, the Fast Moving Consumer Goods (FMCG) sector takes the lead with the highest average salary increase forecast at 5.0 percent, while both the Oil & Gas and Industrial Goods sectors lay claim to second place at 4.7 percent.

The Bank and Insurance sector comes in third with a 4.5 percent forecasted average salary increase.

Mr Victor Chan, Regional General Manager (Singapore and ASEAN) for Productized Services, Hay Group, said, “Our analysis of pay trends in Singapore show that 2014 is likely to turn out to be a reasonably good year as significant economic growth announced by the Ministry of Trade translates into fair increases in pay.

“Nevertheless, there is an opportunity for organisations to be creative about how they reward their people – going beyond the cash component. It’s about spending smarter, not more, and reviewing return on reward spend frequently to ensure the firm is getting more bang for their buck.”