Singapore’s salary budgets are projected to remain stable at 4% in 2026, according to the latest Salary Budget Planning Report by WTW, a global advisory and broking firm. This trend continues from 2024, reflecting a cautious approach by companies amidst ongoing global economic uncertainties.
The report highlights that whilst two out of five organisations in Singapore have reduced their salary budgets due to anticipated recession and cost management concerns, 15% expect higher increases driven by tight labour markets and inflationary pressures. Gary Goh, Rewards Data Intelligence Practice Leader at WTW, noted, “Employers are becoming more strategic in how they distribute compensation, prioritising investments and defining the results they aim to achieve.”
In addition to salary stability, 82% of companies in Singapore plan to maintain their headcount over the next year, marking a 10% increase from 2024. Of the remaining organisations, 12% intend to increase their workforce, whilst only 6% plan reductions. Employers are also adjusting compensation programmes to address rising operating costs and competitive labour pressures, with actions such as targeted salary increases and retention bonuses.
Shai Ganu, Managing Director at WTW, emphasised the importance of adapting to economic shifts, stating, “Employers are concerned about losing critical talent, with change management and employee experience being significant issues.” The survey also revealed a shift towards intra-Asia resilience, with companies exploring new markets within Asia and diversifying supply chains.
Overall, the trends in Singapore and the broader Asia Pacific region reflect a balanced approach to workforce management, maintaining stability whilst addressing emerging challenges in the labour market.
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