One-third of Singaporeans dissatisfied with salary growth, report finds

Employers urged to adopt transparent salary benchmarking to address salary expectations

BY Dexter Tilo 21 Mar 2025

Just one in four employees in Singapore are happy with their current salary as many believe that what they're earning isn't matching industry standards, according to a new survey.

Findings from foundit revealed that only 28% of respondents are satisfied with their salary growth opportunities, with 35% saying they are dissatisfied.

In fact, the report found that these satisfaction levels decline as professionals advance their career, with those at the executive level showing the highest dissatisfaction (39.4%) with their salary growth.

According to the report, the dissatisfaction comes as 53% of working professionals see opportunities for higher compensation compared to their industry peers.

Only 36% feel their salary is above average, while 11% are not sure how their pay compares to market rates.

It can also be attributed to the lack of growth opportunities, as the report further found that 41% of employees did not see major change in their salary over the past three years.

Salary numbers for Singapore

Expected salary growth from appraisal:

Nearly half (49.37%) of employees expect no growth or a maximum of 10% salary hike in their next review
24.5% anticipate a 6-10% increment, while 24.8% foresee just 0-5% growth
16% of professionals aim for substantial increases exceeding 30%
34.9% of entry-level professionals expect 6–10% hikes, while executives (25.7%) top the group anticipating raises of 30% or more.

Salary changes over past three years

41% of professionals saw no salary growth
28% experienced salary reductions (19.3% minor, 8.3% significant)
32% received salary hikes (15.9% modest, 15.3% substantial)

Addressing the dissatisfaction

V Suresh, CEO of foundit, said the growing dissatisfaction among older employees underscore the need for proactive compensation strategies.

"Organisations must adopt transparent salary benchmarking, skills-based compensation models, and clear career progression frameworks," Suresh said in a statement.

"Companies that prioritise fair and structured salary growth will not only improve retention but also strengthen Singapore's position as a premier talent hub in Asia."

More employers in Singapore are planning to hike wages for employees in the first months of 2025, according to the latest data from the Ministry of Manpower.

Its latest Labour Market report revealed that the proportion of firms intending to raise wages in the next three months went up from 15.6% in September 2024 to 31.6% in December 2024.