Mercer's Total Remuneration Survey reveals higher salary increases expected in Singapore for 2024 to counter inflationary impact 

• Median salary increments of 4.2% are expected in 2024, up from 4.1% in 2023 
• Employees to face slower real wage growth amid persistent inflation projections
• Bonus differentiation for outstanding performers has increased, with up to two times more bonus payouts

Singapore, 16 November 2023 – Mercer's Total Remuneration Survey (TRS) 2023 has revealed that employees in Singapore can expect a median salary increment of 4.2% for 2024, up from the actual 4.1% this year. The projected hike in median salary increment can be attributed to factors such as the rising demand for skilled professionals, the need to attract and retain top talent in a fiercely competitive job market, and persistent inflationary pressures. 

The survey, conducted between April and June this year, collected data from 1,106 organizations across 18 industries in Singapore. Singapore’s projected median salary increment of 4.2% falls below the Asia average of 5.2%, reflecting the varying pay progression between emerging and developed economies in the region. India, Vietnam and Indonesia report the highest projected median salary increments for 2024 at 9.3%, 7% and 6.5% respectively, while Japan, Taiwan, and Hong Kong SAR report the lowest at 2.6%, 3.8% and 3.9% respectively. Other countries included in the survey are the Philippines (5.7%), Mainland China (5.2%), Malaysia (5.1%), Thailand (5%) and South Korea (4.4%).

Andrea Tan, Rewards Consulting Leader at Mercer Singapore, said, “Singapore is a developed economy with high productivity and relatively low unemployment rates. Hence, Singapore's scope for substantial salary increases may be more limited compared to emerging economies in the region. While these economies experience rapid growth and development, Singapore's mature economy faces different challenges such as economic restructuring, aging population, and manpower shortage. The focus then shifts towards maintaining stability and competitiveness, which may result in more moderate salary increments.”

Aerospace leads 2024 merit increases 

Salary increments are expected to remain consistent year-on-year across most industries in 2024. The Aerospace sector is projected to experience the highest salary increase at 4.5%, closely followed by Banking & Finance, Consumer Goods and Lifestyle Retail at a joint 4.4%. Conversely, High Tech (4.1%) and Logistics (4%) are projecting lower salary increments compared to 2023.

Regarding industry salary trends, Tan said, “The Consumer Goods and Lifestyle Retail industries’ focus on leveraging technology and data-driven approaches to enhance customer experiences and drive sales growth have contributed to salary increases as companies compete for talent with data analytics and digital marketing expertise. On the contrary, downsizing and layoffs by High Tech companies, along with global supply chain disruptions and rising costs in the Logistics industry, have led to a more cautious approach towards salary increments in 2024.”

Companies are strategically allocating higher total budgets in 2024. Notably, industries like Lifestyle Retail, Banking & Finance and Consumer Goods have total budgets exceeding 6%, as companies are investing more in promotions, market adjustments, and corrections to manage internal pay parity. 

Significant increase in fresh graduates' salaries and higher bonus payouts for outstanding performers

The median annual base salary of fresh graduates from 2019 to 2023 has increased by over 12% for most degree qualifications. Computer Science graduates experienced the highest growth of more than 19% due to the increasing demand for technology talent and the deskilling of experienced professionals. However, this has led to pay parity issues as employees who have spent up to three years in the company earn less than newly-hired graduates. 

This year’s TRS findings have also observed that outstanding performers can receive up to two times more in bonus payouts compared to those who meet their targets. The increased bonus differentiation is due to factors like a growing emphasis on performance-based rewards to drive employee motivation and productivity, and retaining top performers. 

Tan added, “Despite continuous market adjustments and bonus differentiations, talent attraction and retention strategies should go beyond compensation, encompassing career progression and personal development within the organization. Rewards professionals will need to be more strategic, working closely with the talent management team and being proactive in workforce planning to build the skills needed in the future to avoid talent crunch.”

About Mercer’s Total Remuneration Survey

The Total Remuneration Survey, Mercer’s flagship annual compensation and benefits benchmarking study, identifies current pay practices and benefits policies, as well as budget, hiring and turnover trends for the year ahead. In addition, Mercer also conducts regular pulse surveys throughout the year to keep up with the impact of the rapidly changing business environment and compensation and workforce trends.

For more data and insights from Mercer’s Total Remuneration Survey 2023, please see here.

About Mercer

Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with more than 85,000 colleagues and annual revenue of over $20 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit mercer.com. Follow Mercer on LinkedIn and X.