Firms to keep salary growth flat in 2026

It would be the third year in a row that salary increases are at 4%

Employers in Singapore project salary increases to remain flat at 4% in 2025 and 2026, according to a report by advisory firm WTW.

It would mark the third year in a row that salary increases in Singapore remained at the same rate, according to the Salary Budget Planning Report by WTW released on 21 July 2025.

“Although overall budgets remain stable, the real transformation is happening behind the scenes. Employers are becoming more strategic in how they distribute compensation, prioritise investments and define the results they aim to achieve,” said Gary Goh, rewards data intelligence practice leader, Singapore at WTW.

Employers are adjusting their compensation programmes to supplement their regular salary reviews on account of rising operating costs, whilst mitigating competitive labour pressures, WTW said.

These actions included conducting a compensation review of specific employee groups (54%), implementing targeted base salary increases for specific employee groups (39%), and enhancing the use of retention bonuses or spot awards (36%).

Over 8 in 10 (82%) of organisations in Singapore plan to maintain their headcount within the next 12 months, higher than recorded in the 2024 study.