What are Singapore employers planning for salary increases in 2024?

A majority of employers in Singapore are planning to offer up to six per cent salary increases in 2024, according to a new report.

The 2024 Hays Asia Salary Guide revealed that 37.7% of employers in the city-state are planning to offer a salary increase between three and six per cent.

Another 33% said they will hike salaries by up to three per cent, according to the report, while employers planning to offer raises over six per cent dropped in comparison to 2023.

"Employers saw a shift towards more conservative estimates, with an overall rise in all brackets below six per cent increments, as well as those foreseeing a drop in pay and no change in pay," the report read.

Source: 2024 Hays Asia Salary Guide

Employees' salary expectations

Meanwhile, the report also found that more employees are expecting a raise of up to six per cent this year.

Some 29.2% of employees said they are expecting a three to six per cent increase in salary, while 29.5% said they are expecting up to three per cent.

The number of employees expecting salaries to surpass a 10% increase decreased to 9.4%, down by more than half from the 20.6% in 2023.

The "most pronounced gap" between employee expectations and employer readiness showed up in the bracket of raises over six per cent, according to the report.

Only a total of nine per cent of employers are ready to over at least six per cent of salary increases in 2024, much lower than the 20.2% of employees expecting it.

"This calls for candidates to carefully manage their expectations in light of the apparent disparities in preparedness between the two parties," the report read.