As 2022 unfolds and the bad days of COVID recede – hopefully – salaries are once again on the rise. Especially in global centres like Singapore, a city renowned for hard work and top dollar remuneration. But the pandemic has changed a few things somewhat…
In January of this year the average salary in Singapore stood at S$5,783 per month. Though high by world standards many observers expect that figure to rise even higher by year’s end. And maybe higher again.
According to a recent study by Mercer, salary increases in Singapore in 2022 could rebound to pre-pandemic levels, with increments expected to average 3.5% this year. That’s a welcome increase from the 3.3% rise in 2021.
Singapore salaries could soar in 2022
But given the current global staff shortages these anticipated increases could go even higher. As Mansi Sabharwal, Reward Products Leader for Mercer, Singapore stated in a recent article: “Given the ongoing talent war and Singapore’s seven-year high inflation, we expect salary increments for 2022 to rise beyond the projected figure”. She also added that it’s likely Singapore employers will consider financial incentives and salary adjustments to temporarily relieve the pressure on hiring and retention.
On an industry-by-industry comparison, technology and life sciences are also expected to see the highest salary increases in 2022 – 3.9% and 3.7% respectively, along with aerospace at 3.7%. On the other hand, logistics (3.3%), chemicals (3.4%), and lifestyle Retail (3.4%) can expect the lowest increments.
Interestingly, the consumer goods industry is forecasted to see the largest improvement from last year; up from 2.8% to 3.6% as companies remain optimistic about a vigorous recovery in consumer spending due to pent-up demand caused by COVID restrictions.
Tech Jobs attracting high salaries in Singapore
In Singapore especially, technology jobs have attracted the largest salary increases in recent years. The reasons for this include the ongoing tech talent shortage as a result of COVID, in combination with Singapore’s aim to become the tech capital of Asia.
The fierce competition for talent in the technology field in Singapore is not just limited to senior positions. Competition for junior positions has resulted in a boost in starting salaries for fresh graduates. For instance, computer science engineering graduates in Singapore are getting an average starting salary of S$44,200 per annum, compared to S$42,900 for the same qualification in other industries.
You can gain a fuller picture of the salary levels in Singapore’s Tech sector – and in other industry verticals such as marketing, finance, manufacturing and healthcare etc by referring to the various salary guides and talent outlooks published every year by reputable companies.
Salary Guides can help you
These types of publications are very helpful, especially if you’re a
- Job-seeker. These types of guides will help you to set and manage your expectations.
- Payrise seeker. These guides can give you a benchmark figure.
- Students looking to further their studies. Salary guide can help you better decide if the cost of higher education is worth it.
But in these post pandemic, health conscious times, in Singapore and elsewhere around the world, money isn’t everything as employers strive to diversify compensation packages with a focus on employee experience and well-being rather than just pay alone.
For example Robert Half found recently that many businesses were now re-addressing the benefits packages they offer, with the inclusion of perks such as flexible hours, remote-working options and allowances for home office equipment.
With the shock of COVID, workers are now re-looking at the whole package. Alongside salary, jobseekers now consistently list flexibility and a better work/life balance as important factors when choosing an employer, in addition to company culture and advancement opportunities.
Professional development too is becoming an increasingly significant factor for potential employees.
In post-COVID 2022, it certainly won’t be all about the money, but with the talent shortages worldwide employers will need to open up their wallets as well as become more creative and flexible with the salary package offers they make to potential employees.
Like to know more about salary levels in Singapore and throughout the Asian region, or what the new world of work will be like in 2022/2023? Or how workforce management companies like CXC can help you create a more successful future? Then don’t hesitate to contact us today!