Mercer has announced that average employee salaries in Singapore are projected to increase by 4% in 2026, maintaining a steady pace similar to the previous year. This forecast comes from Mercer’s Total Remuneration Survey 2026, which examines trends across nearly 1,157 companies in Singapore.
Nearly 98% of companies in Singapore plan to implement salary increases next year. The sectors benefiting most are those leveraging Singapore’s strategic strengths, such as Logistics, Shipping, Aerospace, High-Tech Manufacturing, and Consumer Goods, with salary hikes ranging from 4.9% to 5.5%. The high-tech sector, despite challenges in commoditised IT roles, is experiencing strong wage growth in specialised areas like cloud computing and cybersecurity due to skill shortages and digital transformation investments.
Eugene Chong, Head of Career Products at Mercer Singapore, highlighted the importance of considering broader economic factors when determining salary adjustments. “Merit increases must also reflect the broader cost-of-living dynamics, as rising living expenses directly impact employee financial well-being,” Chong stated.
Looking forward, most sectors anticipate moderate growth, with increases ranging from 3.2% to 4.5%. The focus remains on roles that enhance Singapore’s position as a strategic regional hub, with key positions in Risk Management and IT augmentation playing crucial roles in navigating economic challenges.
As companies approach talent and salary review cycles, Mercer advises considering segmented budgets for critical talent to bolster attraction and retention efforts.
