Real wages in Singapore up 3.2% in 2024

Rank-and-file workers had the highest increase at 5.8%

Real wages in Singapore increased by 3.2% in 2024, up from 0.4% in 2023, according to the Ministry of Manpower (MOM).

The growth was due to stable nominal wage growth and lower inflation. Nominal wages for full-time resident employees who stayed with the same employer rose by 5.6%, similar to the 5.2% increase in 2023.

The ministry noted that easing inflation meant workers kept more of their wage gains. However, businesses are cautious about 2025.

A survey by MOM in early 2025 showed fewer firms plan to raise wages this year. Geopolitical tensions and global trade risks are weighing on business confidence, especially in manufacturing and wholesale trade.

More companies raised wages in 2024—78.3%, up from 65.6% in 2023. Only 3.2% cut wages, down from 6.5% the year before. The average wage increase was 6.6%, slightly below 2023’s 7.2%. Wage cuts were smaller too, averaging -3.6%, compared to -6.2% in 2023.

Rank-and-file workers had the highest increase at 5.8%, followed by junior management at 5.6% and senior management at 5.1%.

Government policies, such as changes to the Local Qualifying Salary and Progressive Wage Model, helped lift lower-wage workers without adding major cost burdens to firms.

Wages increased across all industries, but growth varied. Administrative and support services saw the highest rise at 8.7%, followed by financial services at 6.7% and community services at 5.7%.

Meanwhile, food and beverage (4.8%), wholesale trade (4.2%), and manufacturing (5.1%) had below-average increases.

About 80.8% of firms remained profitable in 2024, slightly down from 82.1% in 2023. Profitability dropped in sectors like real estate, construction, and wholesale trade but rose in manufacturing. That trend may reverse in 2025 if global trade conditions worsen.

However, flexible wage system adoption remains low. Only 8.5% of firms fully adopted both the monthly and annual variable components, though 76.0% used at least one. Variable wages made up just 14.9% of total wages. Firms using flexible components were more likely to raise wages through those channels.

The government and National Wages Council are urging companies to adopt more flexible wage systems and focus on productivity.