S’pore firms to keep pay rises steady at 3% to 6% in 2026; some plan smaller bonuses: HR firms

SINGAPORE - Singapore employees could see salary increments ranging from 3 per cent to 6 per cent on average in 2026, according to recent salary surveys by human resources (HR) firms. 

Similar to the outlook for 2025, HR firms said companies remain cautious in pay planning due to economic uncertainty, with some showing signs of easing and moderation in their salary increment budgets for 2026.

“We’re seeing more employers moving towards smaller increments and smaller bonuses,” said Ms Linda Teo, country manager of talent firm ManpowerGroup Singapore.

ManpowerGroup said in its recent annual salary and bonus plans report that more bosses (21 per cent) are planning to give smaller increments of less than 3 per cent in 2025-26, up from 18 per cent in 2024-25. 

At the same time, fewer employers (23 per cent) are planning pay increases of 5 per cent or more, compared with the previous year’s 26 per cent. The group surveyed 504 employers across several industries in October 2025.

Professional services firm Aon and recruitment firm Persol found that companies here are budgeting about a 4.3 per cent salary increase on average in 2026 – the same as in 2025.

Meanwhile, global talent firm Robert Walters said employees staying on with their current companies could see their salaries increase by 3 per cent to 6 per cent in 2026 to align with inflation. This is higher than the projected 2 per cent to 5 per cent in 2025.

Ms Kirsty Poltock, the firm’s country manager in Singapore, said the projected 3 per cent to 6 per cent increase signals that companies are taking a measured but proactive approach to ensuring they remain attractive to talent while managing costs responsibly.

“While organisations are more cautious in their hiring plans, they also recognise that competitive remuneration is essential to securing and engaging the skilled professionals needed to deliver long-term business priorities.”

Persol, likewise, forecasts employers giving salary increments averaging 3 per cent to 5 per cent.

Consultancy firm Mercer, whose report analysed salary trends and policies across nearly 6,000 roles in over 1,157 Singapore companies, expects the average employee salary in Singapore to increase by 4 per cent in 2026, similar to 2025. Most sectors anticipate growth of 3.2 per cent to 4.5 per cent.

This is despite sluggish economic growth expected in 2026. In its

first forecast for 2026

, the Ministry of Trade and Industry said on Nov 21 that the economy is likely to grow by a slower 1 per cent to 3 per cent. 

Industry breakdown

Despite challenging market conditions in 2025, some industries have exceeded the initial budget projections of 4.9 per cent to 5.5 per cent, data from Mercer showed. These are logistics and shipping; aerospace; high-tech manufacturing; and consumer goods.

Said Mr Eugene Chong, Mercer Singapore’s head of career products: “Singapore has a lower tariff rate compared to our peers, so for the logistics sector, we have become a strategic hub for imports and exports.

“As the fifth-largest exporter of high-tech products, Singapore is also a global advanced manufacturing hub. Consumer goods might be experiencing a boom since the tariff situation seems to be bringing in more foreign direct investments into Singapore. In addition, there continues to be strong air travel demand.”

Aon’s latest survey, which covered over 700 companies and their regional offices across more than 15 industries in Singapore, Indonesia, Malaysia, Thailand, Vietnam and the Philippines, showed that life sciences and medical devices firms in Singapore are projected to offer the largest pay bump, at 4.6 per cent.

Similarly, data from Persol showed that the healthcare and life sciences sector is seeing growing demand for clinical researchers, regulatory specialists and medtech engineers, with competitive premium salaries in emerging hybrid roles.

The firm noted that specialised roles in the tech sector such as artificial intelligence (AI), cybersecurity and cloud computing professionals showed robust salary growth of 8 per cent to 12 per cent.

Among professionals in banking and financial services, HR firms found that professionals related to environmental, social and governance (ESG) compliance and disclosures are projected to enjoy strong salary increases. 

According to data findings from Robert Walters, a surge in hiring for compliance and risk projects is expected, with tightened regulations in areas like digital assets. Salary premiums will be offered to those with scarce skills and domain expertise in AI automation, risk and ESG. 

In the supply chain, procurement and logistics sector, Robert Walters found that those in specialised roles could see salary increases of 10 per cent to 15 per cent. Contract roles can expect a rise of 5 per cent to 8 per cent, said the firm, while pay rises for permanent employees are expected to “remain flat”, with companies possibly exploring non-monetary benefits.

However, data from the HR firms showed some differences in their predictions, with some prospects differing across industries.

For example, data by ManpowerGroup revealed that the construction and real estate sector had the largest proportion of employers (33 per cent) who are more likely to give more competitive increments of above 5 per cent. This is followed by the finance and insurance sector (27 per cent).

Ms Teo attributed the positive momentum in the construction and real estate sector to increased government spending on infrastructure projects, which is driving demand for skilled professionals. “With a relatively smaller talent pool, organisations in this sector are likely using higher salary increments and bonuses as strategic tools to retain experienced talents.”

Meanwhile, she added, in the finance and insurance sector, larger increments may reflect the intense competition for specialised skills in areas such as compliance, risk management and digital transformation.

On the other hand, some HR companies are expecting moderate salary increases for the construction and real estate sector. Mercer said salary increases in the real estate sector are expected to remain aligned with the market at 3.9 per cent, while those in the construction sector can expect a 3.8 per cent increase.

For the construction sector, Persol similarly expects moderate growth, but added that with an increasing focus on green building standards and digital construction technologies, specialists in sustainable architecture and project management can expect higher compensation.

Bonus plans

Bonuses are showing signs of moderation, with 11 per cent of employers planning to offer bonuses of more than 1½ months, according to ManpowerGroup. This is a decrease from 12 per cent the previous year.

The proportion of employers planning to give employees more in bonuses has also fallen, with 34 per cent of them planning for bonuses of between one month and 1½ months in 2025-26, compared with 35 per cent in 2024-25.

But more employers (45 per cent) are awarding exactly one month’s bonus, compared with the previous year (42 per cent).

ManpowerGroup found that employers in the finance and insurance sector, as well as the tech and IT services sector, are more likely to give bonuses of more than one month.

Sales jobs are among the hottest

in the region, according to Aon.

Robert Walters noted that for contract roles, employers in sales and marketing may use bonuses, stock options and non-monetary benefits such as flexible work and upskilling allowances “more aggressively” than large fixed salary increases.

Job switchers

Pay increases for employees who switch jobs tend to be higher.

Robert Walters, which surveyed 361 professionals and companies in Singapore in September 2025, said job switchers can expect increments of 5 per cent to 15 per cent. But those in niche areas like AI or cybersecurity can expect up to 20 per cent.

For those who are looking to switch jobs, a large share of employees – or 83 per cent of them – expect a more than 10 per cent pay rise. The firm said 23 per cent of them are likely to request a more than 20 per cent pay bump.

Aon highlighted that turnover levels in Singapore firms in the period from June 1, 2024, to June 1, 2025, remained among the highest in the region at 19.3 per cent, just behind the Philippines (20 per cent). 

The Persol report noted that as younger professionals, particularly those in the Gen Z age group of 17 to 28, are reshaping workplace expectations, the optimal job tenure for many remains one to two years. This is substantially shorter than in other Asian markets.

But notably, there were

fewer employed younger people – aged 25 to 29 – who changed jobs

in 2025, according to the Ministry of Manpower’s figures released on Nov 28.

The share of employed residents who changed jobs fell from 7.6 per cent in 2024 to 6.2 per cent in 2025. This bears out the

observations of “job hugging” in Singapore

, where employees choose to hold on to their current jobs instead of pursuing new opportunities or career advancement. 

Mr Foo See Yang, managing director of Persol Singapore, said that while economic uncertainty has prompted young professionals to re-evaluate the timing of their career moves, it has not changed their preferences for mobility.

These beliefs, he said, have been shaped by their “exposure to fast-changing industries, the rise of portfolio careers, and the understanding that progression is often unlocked through movement rather than long stints in a single role”.

“Job changes remain common, but they are increasingly intentional and purpose-driven. Instead of switching jobs quickly, they ask if a new role will truly advance their skills, offer stability and prepare them for the future economy.”

Mr Foo added that when the economy slows down, people tend to hold on to their jobs a little longer, but that the “job hugging phase is often short-lived”.

“Once things improve, job movement usually picks up again, especially for those who feel stuck. Economic uncertainty usually changes how people act, not what they believe,” he said.