Insights on sector performance, negotiation strategies, and financial planning for a stable future.
Despite global economic uncertainties, job prospects in Singapore are improving—but what about salary increments in 2024? While the terms “salary increment” and “pay raise” are often used interchangeably, they differ slightly in meaning.
Salary increments typically refer to adjustments in an employee’s base salary after annual performance reviews, while pay raises may occur at any time, motivated by factors like promotions, cost-of-living adjustments, or market competitiveness.
Industry-Specific Outlook for 2024
Singapore’s economy, recovering post-COVID, saw a modest 0.7% year-on-year growth in Q3 2023, up from 0.5% the previous quarter. While this is far from the robust growth of 2022, employers remain optimistic about offering salary adjustments.
A survey by the Singapore Business Federation (SBF) revealed that 64% of 282 businesses plan an average 6% salary increment. Notably, 88% of surveyed companies, including SMEs, delivered raises in the past 12 months and plan further increases.
However, growth varies across sectors. Employees in industries like Construction, Accommodation, and Food Services are likely to see more generous increments due to improved performance. Conversely, high costs in sectors like Real Estate, Health, and Information and Communications may limit wage increases.
Industries Affected by Inflationary Pressures
Industry Percentage Impacted by Inflation (%)
Real Estate 100
Health & Education 80
Information and Communications & Professional Services 72
Retail, Hotels, and Food & Beverages 70
Construction & Civil Engineering 64
Manufacturing 62
Wholesale Trade 53
Other Services 53
Banking, Finance, Insurance & Accounting 52
Logistics & Transportation 41
Arts, Culture, and Social Services 40
Sectors like Finance and Insurance, and Wholesale and Retail Trade have struggled to meet growth forecasts, making significant wage hikes less likely unless conditions improve in late 2023.
Negotiating a Pay Raise
Feeling undervalued? Here are some tips to negotiate effectively:
Pick the Right Moment: Timing is crucial. Annual performance reviews or the completion of successful projects provide natural opportunities to discuss a raise. Avoid negotiating during company financial struggles or immediately after a failed project.
Highlight Achievements: Demonstrate your value with concrete evidence—exceeded KPIs, outstanding sales performance, or additional responsibilities you’ve taken on.
Acknowledge Constraints: Be prepared for potential rejections due to corporate salary caps, pay freezes, or budgetary limitations. Explore alternatives like performance bonuses or profit-sharing arrangements.
Financial Planning for 2024
Whether your industry is thriving or merely surviving, proactive saving and investing remain key to financial security. Research the best savings accounts or brokerage platforms to grow your wealth effectively.
Staying informed about industry trends and your value within the workforce will help you navigate the evolving job market while planning for a stable future.
