A recent report conducted by ECA International’s (ECA) Salary Trends Report revealed that workers in Singapore would receive a wage increase of 3.8% next year.
However, due to inflation, the actual terms of the salary increase will be set back by 1.7%.
Singaporean workers were able to receive a 3.8% salary increase in 2022, which is expected to further rise to 4% next year, but due to inflation, which was pegged this year at 5.5%, the salary increase projection went down to 3.0% for 2023.
“Although salary growth in 2022 was higher in Singapore than in recent years, a surge in inflation means many will experience a reduction in disposable income,” ECA International’s Regional Director - Asia, Lee Quane, said.
“Salaries will fall by almost 2% this year in real terms but workers in Singapore are not alone as those in eight other countries in the region will also experience a fall in the buying power of their salaries in 2022,” he added.
The report also stated that Europe will most likely be the worst hit by stymied salary growth due to inflation, with nominal wage growth minus the rate of inflation down at an average of 1.5%.
And of all the countries in Europe, workers in the United Kingdom suffered the biggest hit. Although it recorded a 3.5% average nominal pay increase in salaries, because of its 9.1% average inflation, it dropped by 5.6%, and is expected to drop another 4% next year.
“Our survey indicates another tough year for workers globally in 2023. Only around a third of the countries surveyed are forecast to see real-terms salary increase, though this is better than the 22% that experienced increases this year,” Quane said.
“The good news for Singapore is that its workforce can expect to see a return to real salary growth in 2023, although it will continue to be modest compared to elsewhere in the region. Lower-income and more vulnerable individuals will also benefit in the meantime from the government’s proactive support measures aimed at shielding its citizens from the impact of inflation,” explained Quane.
ECA International, a world-leading provider of information, software, and expertise for the management and assignment of employees, surveyed 68 countries and cities around the world to analyse current and projected salary increases.
Marvin Joseph Ang is a news writer who focuses on politics, the economy, and democracy. His advocacies include press freedom and social justice. Follow him on Twitter at @marvs30ang for latest news and updates. The views expressed are his own.
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