MOM: Wage growth slowed down for workers in Singapore last year compared with 2024; expected to stay moderate in 2026 - Singapore News
· The IndependentSINGAPORE: Singapore workers received pay rises for a second straight year in 2025, although wage growth slowed compared with 2024.
The good news is that workers were still better off in real terms. With inflation easing, salaries stretched further, giving employees a stronger boost in purchasing power than the year before.
According to the Ministry of Manpower (MOM) on May 28, nominal wages for full-time resident employees who stayed with the same employer for at least a year rose by 4.9 per cent in 2025, down fro`m 5.6 per cent in 2024. After adjusting for inflation, real wages increased by 4.0 per cent, up from 3.2 per cent the previous year.
Nick Karean/The Independent Singapore News
MOM: Wage Growth 2025
The figures suggest that while pay packets didn’t grow as fast based on data, workers still benefited from a lower cost-of-living environment than in 2024.
More companies remained profitable
MOM’s report showed that business conditions stayed fairly healthy through 2025. More than eight in 10 establishments, or 83.1 per cent, reported making a profit, up from 80.8 per cent in 2024. At the same time, the share of companies reporting losses fell to 16.9 per cent from 19.2 per cent a year earlier.
The data paints a picture of a business sector that stayed resilient despite ongoing global economic uncertainty. Smaller firms were still more likely to report losses than larger companies, mirroring the tougher operating conditions faced by businesses with fewer resources.
Employers became more careful with salary increases for employees
While most employers continued raising salaries for workers, there were signs of greater caution. About 72.4 per cent of establishments increased wages in 2025, down from 78.3 per cent in 2024. Meanwhile, nearly a quarter of firms left wages unchanged, up from 18.5 per cent the year before.
Among companies that granted pay increases, the average wage rise was 5.8 per cent. Employee retention remained the main reason employers chose to increase salaries. In a tight labour market, retaining experienced staff remains a priority for many businesses.
Only 3.1 per cent of companies reduced wages; those that did generally faced weaker business performance than in the previous year. The trend shows that workers still expect wage growth, but businesses are also preparing for economic uncertainty and rising costs.
Wage gains spread across sectors and job levels
One notable finding from the report was that wage growth was broad-based. Rank-and-file employees saw wages grow by 4.8 per cent, junior managers by 5.1 per cent and senior managers by 4.9 per cent. The differences between these groups narrowed, suggesting gains were shared more evenly across the workforce.
Every sector recorded positive wage growth. Administrative and Support Services posted the strongest increase at 7.5 per cent. The sector includes cleaning, security and landscape services, where lower-wage workers continue to benefit from the Progressive Wage Model and Local Qualifying Salary requirements.
Financial Services and Insurance Services also recorded healthy wage growth as demand remained strong for professionals and managers.
Nick Karean/The Independent Singapore News
MOM: Wage Growth by Industry 2025
The accommodation and construction sectors still saw pay increases, but at a slower pace than the previous year, as hiring demand stabilised following the post-pandemic rebound.
Workers can expect real wage growth to stay positive in 2026
MOM expects real wage growth to remain positive in 2026. However, businesses are likely to stay cautious when deciding on salary increases due to inflation risks and geopolitical tensions.
As such, workers may continue seeing pay rises, but probably not at the pace many experienced during the stronger post-pandemic recovery years.
The report indicates that wage growth is still tied to productivity. Sustainable salary increases depend on businesses becoming more productive, workers upgrading their skills and companies maintaining healthy financial performance.
What matters more now than how much salaries increase is how much purchasing power is left for Singaporeans after their everyday expenses are paid.
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