More employees in Singapore received salary increases in 2021
Total wage growth rebounded to pre-pandemic levels as businesses across the country continued their economic recovery.
Total wage growth in Singapore, including employer contributions to the Central Provident Fund (CPF) of resident employees who have worked for the same employer for at least one year, was 3.9% in 2021.
According to Singapore’s Ministry of Manpower (MOM), the strong recovery of the Singaporean economy and a tight labor market have prompted more employers to raise salaries for their employees in 2021, after a period of wage moderation in 2020.
“As a result, more employees received salary increases last year, and salaries also increased at a faster rate than in 2020.”
While 2021 total wage growth rebounded to 2019 levels, it was lower than 2010, suggesting employers may have been “more cautious given the longer tail” of the pandemic, MOM said.
Global inflation also played a role in ensuring that real wage growth came in at 1.6% in 2021, slightly above the 1.4% recorded in 2020, and less than half of the 3, 3% in 2019.
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This year, MOM expects the tight labor market to support continued nominal wage growth, but warned that global conflicts and prolonged global supply disruptions could dampen demand and nominal wage growth.
With the recent shocks to the global supply chain, inflation is expected to remain high and dampen real wage growth this year, MOM added.