ECONOMY | Staff Reporter, Singapore

Companies ‘cautious' on 2021 salary increments: survey

Projected overall salary increase for 2021 is at 3.5%.

Many companies in Singapore are continuing to tread with caution on salary increments in 2021 as they navigate the impacts of COVID-19, according to Mercer’s annual Total Remuneration Survey.

Heading into 2021, the survey showed that 25% of organizations will implement or continue salary freezes, whilst 3% have indicated they will implement salary reductions. These are in comparison to the 30% of companies that implemented salary freezes and 29% that made salary reductions this year.

Overall salary increase projected for 2021 will soften to 3.5% compared to last year’s 3.6%

“Businesses continue to remain cautiously optimistic about the future and are considering more holistic talent strategies to energize their employees in the new shape of work, including additional incentives. Leaders are also looking ahead to attract and retain talent required to accelerate business digitalization,” Mercer Chief Executive Officer for Singapore Peta Latimer said.

Increments for logistics and consumer goods industries are expected to grow to 3.3% and 3.5% respectively, whilst lifestyle retail are expected to dip the sharpest to 2.9%.

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