Singapore workers likely to see 3–6% pay rises in 2026

"We’re seeing more employers moving towards smaller increments and smaller bonuses," said Linda Teo, country manager of talent firm ManpowerGroup Singapore, as reported by The Straits Times.

ManpowerGroup, in a recent report, noted that a higher share of employers, 21%, intend to offer increments of less than 3% in 2025-26, up from 18% in 2024-25.

Meanwhile, the proportion of employers planning raises of 5% or more declined to 23% from 26% a year earlier.

The findings were based on a survey of 504 employers across multiple industries conducted in October.

Separately, professional services firm Aon and recruitment firm Persol said companies in Singapore are budgeting average salary increases of about 4.3% in 2026, unchanged from 2025.

Global recruitment firm Robert Walters said employees who remain with their current employers could see pay rises of between 3% and 6% in 2026, in line with inflation.

This compares with an estimated 2% to 5% increase in 2025.

Kirsty Poltock, the firm’s Singapore country manager, said the forecast 3% to 6% rise reflects a balanced yet forward-looking strategy as companies seek to stay attractive to talent while keeping costs in check.

"While organizations are more cautious in their hiring plans, they also recognize that competitive remuneration is essential to securing and engaging the skilled professionals needed to deliver long-term business priorities."

Consultancy firm Mercer, which reviewed salary trends and policies for nearly 6,000 roles across more than 1,157 Singapore companies, projects an average salary increase of 4% in 2026, similar to 2025.

Most industries are expected to record growth of between 3.2% and 4.5%.

This comes even as economic growth is forecast to slow in 2026. In its first outlook for the year, released on Nov 21, the Ministry of Trade and Industry said the economy is expected to expand by 1% to 3%.