Workers In Singapore Expected To See Higher Salary Increase in 2023
According to the latest Salary Trends Report by ECA International (ECA), the real wage of workers in Singapore, which is equal to nominal wage growth minus the rate of inflation, fell by 1.7% in 2022 but is expected to grow by 1.0% in 2023.
In 2022, workers in Singapore received a salary increase of 3.8% in nominal terms and this rate of growth is forecast to rise further to 4.0% next year. Inflation in Singapore this year is 5.5%, similar to the average rate of inflation in the region, and is expected to fall to 3.0% in 2023.
“Although salary growth in 2022 was higher in Singapore than in recent years, a surge in inflation means many will experience a reduction in disposable income,” said Lee Quane, Regional Director – Asia at ECA International. “Salaries will fall by almost 2% this year in real terms but workers in Singapore are not alone as those in eight other countries in the region will also experience a fall in the buying power of their salaries in 2022.”
This trend is also more pronounced globally, with average worldwide salaries falling by 3.5% in real terms this year. “High rates of inflation meant that workers in most locations worldwide were worse off as salaries fell in real terms in 2022,” shared Quane. “On average, salaries fell by 3.8% in real terms in 2022, with workers in over 50 of the countries we surveyed experiencing a fall in salaries in real terms.”
“The good news for Singapore is that its workforce can expect to see a return to real salary growth in 2023, although it will continue to be modest compared to elsewhere in the region. Lower-income and more vulnerable individuals will also benefit in the meantime from the government’s proactive support measures aimed at shielding its citizens from the impact of inflation.”
