Fewer firms hiked wages amid weaker profits in 2015: MOM

Nominal wages rose 4% last year.

A smaller proportion of companies raised wages in 2015 on back of deteriorating profits, according to the Ministry of Manpower (MOM).

The MOM's report on wage practices showed that only 64% of firms increased wages last year, compared to 72% in 2015. Meanwhile, the proportion of firms that were more profitable than a year ago declined, and those which were less profitable or incurred losses increased.

Nominal total wages in the private sector grew by 4.0% in 2015, lower than the 4.9% increase in 2014. When employer Central Provident Fund (CPF) contributions are factored in, growth in total wages remained stable at 4.9% in 2015, due to the increase in employer CPF contributions in 2015.

Accounting for the -0.5% CPI inflation, real total wages including employer CPF contributions rose by 5.4% in 2015, compared to 3.9% a year ago.