Singaporean employers are increasingly focusing on role redesign and skill development as salary increase budgets stabilise, according to WTW’s latest Salary Budget Planning report. The report highlights a shift from broad pay hikes to targeted workforce strategies, with actual salary increases in Singapore recorded at 3.9% in 2026, slightly below the 4.0% of 2025, and projected to return to 4.0% in 2027.
The report, which surveyed 759 organisations in Singapore, indicates that three-quarters of employers adjusted salary increases within a 2.5% to 5.0% range. This reflects a stable yet selective pay environment, where increases are directed towards priority roles and skills. More than half of the employers maintained steady pay budgets in 2026, with only 7% reporting higher budgets than initially planned.
Cost management, inflationary pressures, and talent competition are driving cautious salary planning. Employers are increasingly investing in roles that support digital transformation and operational execution. DN Prasad, Head of Work & Rewards at WTW Singapore, noted, “Employers are maintaining workforce stability whilst selectively investing in roles and capabilities.”
WTW’s Talent Intelligence analysis shows high demand for roles in customer service, technology, and data sectors. Positions such as Software Engineers, AI Engineers, and Data Scientists are among the top in demand, underscoring the importance of digital transformation across industries. As companies adapt to these changes, understanding evolving role requirements and skill needs becomes crucial for sustaining workforce resilience.
