Wages grew slower in 2023 than in 2022; 6.5% of firms cut pay

MOM expects nominal wage growth in 2024 to remain similar to that in 2023

- Tay Hong Yi

Wages in Singapore continued growing in 2023, albeit at a slower pace than in the year before.

As economic growth slowed and employers faced challenges maintaining profits, nominal total wages grew by 5.2 per cent in 2023, down from 6.5 per cent in 2022.

Hence, although inflation eased, real wage growth held steady from 2022, at 0.4 per cent after accounting for price changes.

These figures released by the Ministry of Manpower (MOM) on June 25 are for Singaporeans and permanent residents who worked full time for an employer for at least one year, and include employer contributions to the Central Provident Fund.

Total wages include basic wage and an annual variable component that takes into account bonuses.

The ministry said growth sectors such as information and communications, financial services, professional services, and health and social services could see higher wage growth in 2024, though increases may be tempered amid an uncertain business environment.

There continues to be strong demand for professional, managerial, executive and technical workers in these sectors.

“On balance, we expect the nominal wage growth in 2024 to remain similar to 2023.

“With inflation expected to stay on a gradually moderating trend, we expect an improvement in real wage growth,” said MOM in its report on wage practices.