Wages in Singapore increased in 2024, with nominal wages growing 5.6 per cent, a similar growth compared to 2023’s 5.2 per cent increase.
After factoring in lower inflation, real wages grew by 3.2 per cent—a sharp rise from 0.4 per cent the year before.
This is according to the Ministry of Manpower’s (MOM) Report on Wage Practices 2024, released on 28 May 2025.
Most businesses in Singapore stayed profitable in 2024, with 80.8 per cent reporting profits—slightly down from 82.1 per cent in 2023.
Profitability, however, differed across industries, with gains in Manufacturing but declines in Real Estate Services, Construction, and Wholesale Trade.
MOM also expects this growth to moderate in 2025.
“Because of the tariff-related issues, we expect the wages in the manufacturing and wholesale trade to decline later this year,” said an MOM spokesperson.
More companies in Singapore gave wage increases in 2024. The proportion of companies that provided wage increases rose to 78.3 per cent from 65.6 per cent in 2023. This was mainly due to organisations’ past performances rather than their future outlook.
There were also fewer firms cutting wages in 2024, with the share dropping from 6.5 per cent in 2023 to 3.2 per cent. The remaining 18.5 per cent of companies kept their employees’ wages unchanged.
Among companies that raised pay, the average increase slowed from 7.2 per cent to 6.6 per cent. For those that reduced pay, wage cuts were less steep at 3.6 per cent, down from 6.2 per cent in 2023.
Rank-and-file and junior management employees experienced slightly higher wage growth in 2024, at 5.8 per cent and 5.6 per cent, respectively, compared to 5.1 per cent for senior management.
This trend reflects efforts to ease cost-of-living pressures for lower-income groups.
Policy measures such as the increase in the Local Qualifying Salary (LQS) and the implementation of the NTUC-mooted Progressive Wage Model (PWM) initiatives also contributed to the wage uplift.
These increases had minimal impact on cost competitiveness, according to MOM, as lower-income employees make up only a small share of total business costs.
Wage growth was recorded across all industries in 2024, though the pace varied.
Administrative and Support Services saw the highest increase at 8.7 per cent, driven mainly by the PWM.
Financial Services and Community, Social and Personal Services also posted above-average growth of 6.7 per cent and 5.7 per cent respectively, supported by ongoing demand for skilled workers.
However, Food and Beverage Services registered a below-average growth of 4.8 per cent, reflecting the sector’s weaker economic performance.
Wage growth in Wholesale Trade (4.2 per cent) and Manufacturing (5.1 per cent) also fell below the national average and is expected to decline further due to ongoing geopolitical and trade uncertainties.
Meanwhile, 76 per cent of establishments implemented at least one Flexible Wage System (FWS) component in 2024, though overall adoption has gradually declined over the past decade.
The FWS comprises the Monthly Variable Component (MVC) and Annual Variable Component (AVC).
Only 8.5 per cent of firms fully adopted both the MVC and AVC, and variable wages made up just 14.9 per cent of total wages in the private sector.
MOM noted that companies which adopted at least one FWS component were more likely to provide wage increases through variable wage adjustments.
The ministry urges greater adoption of the FWS. It said that FWS could help businesses offer competitive wages while remaining flexible in response to changing economic conditions.
