Here's why recent real wage growth is lower compared to a decade ago

Total real wage growth in 2021 was at 1.6%—less compared to 2010'2 2.7%.

The salary hike, which was dampened by higher inflation, could possibly be due to “cautious” employers amidst the uncertain factors in the global economy, UOB said in its May 2022 market overview report.

Based on the figures from the Ministry of Manpower (MOM), 2021’s total real wage growth of 1.6% was lower than 2010's 2.7%.

This is slightly above the 1.4% wage hike in 2020; but the MOM still described this as a slow increase for salary hike.

"After the global financial crisis, total wage growth rebounded the following year in 2010 to 5.7%, whilst in 2021's total wage growth was lower than in 2010, suggesting that employers may have been 'more cautious given the longer tail' of the COVID-19 pandemic," UOB said quoting MOM.

"Downside risks to the global economy remain, such as the ongoing Russia-Ukraine conflict and protracted global supply disruptions, and MOM said this could moderate demand and nominal wage growth."

The total wage growth, including employer Central Provident Fund contributions, rebounded 3.9% in 2021, comparable to pre-pandemic levels.

Follow the links for more news on

Ministry of Manpower

UOB

Salary Report

Also Read

Low inflation in Singapore unlikely to hold in 2Q24

Lower private transport costs ease inflation to 2.7% YoY in March

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit