Real salaries in Singapore up by 3.9% last year as inflation dips

Private sector salaries in Singapore grew 4.9 per cent in 2014, slightly lower than 5.3 per cent the year before. -- PHOTO: ST FILE 
Private sector salaries in Singapore grew 4.9 per cent in 2014, slightly lower than 5.3 per cent the year before. -- PHOTO: ST FILE 

SINGAPORE - Private sector salaries in Singapore grew 4.9 per cent in 2014, slightly lower than 5.3 per cent the year before.

But after taking inflation into account, latest official data shows that salaries rose at a faster pace to 3.9 per cent in 2014, compared with 2.9 per cent in 2013.

These figures include employers' Central Provident Fund contributions as well as bonuses.

The Manpower Ministry Report on Wages, released Thursday , also showed that inflation eased to 1 per cent in 2014, compared to 2.4 per cent a year earlier.

The ministry said that more firms are now adopting flexible wage practices like linking bonuses to performance and introducing variable components into monthly wages.

In 2014, 89 per cent of staff working in private firms had some form of flexibility in their wages, the highest in a decade.

ameltan@sph.com.sg