Highlights
Total Wage Growth Remained Strong in 2022, 29 May
· As the Singapore economy continued to grow in 2022, there was a strong increase in the proportion of profitable firms. As a result, more firms were able to raise their employees’ wages in 2022 compared to 2021. Nominal wage growth in 2022 was at its highest in a decade. Notwithstanding higher inflation, real wages continued to grow, but at a slower pace compared to 2021.
· Against the backdrop of the global economic slowdown and a more uncertain business environment, firms are likely to take a cautious approach regarding salary increments. Hence, total wage growth is expected to moderate in 2023.
· The key findings highlighted in the report were as follows:
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- The nominal wage increase in 2022 (6.5%) was significantly higher than in 2021 (3.9%), and the highest in a decade. This reflected the efforts by firms to restore wages of some employees who experienced wage cuts during the pandemic years, as well as give higher wage increases to other employees to retain staff amidst competition for workers.
- The proportion of profitable establishments rose for the second consecutive year to 83.9% in 2022. As a result, the proportion of establishments which gave wage increases rose from 60.0% in 2021 to 72.2% in 2022, and was slightly higher than the pre-pandemic level in 2019 (69.2%).
- In 2022, all industries experienced higher wage growth compared to 2021. However, the magnitude of increase varied across industries.
· To remain competitive and resilient amidst these global developments, we encourage firms and workers to press on with business and workforce transformation, and make full use of Government programmes to adapt to the changing environment. The Government also encourages all firms to implement the Flexible Wage System (FWS) as the uncertainties ahead continue to underscore the need for resilience and flexibility in wage structures.
[For more details: https://go.gov.sg/fgztco]
