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As we move into 2021, the one big question mark hanging over the heads of job seekers and employees is: “Will I see a pay raise this year?” The post-Covid salary trends in Singapore are unlike most years. With the unprecedented economic consequences of the Covid-19 pandemic, salaries and remuneration package planning is not as straightforward as before.
In most organisations, salaries are determined by employee performance, business performance, availability of talent, the importance of the role, the organisation’s reputation, and the economy – to name a few. As observed last year, the Singapore economy plummeted due to the drastic effects of coronavirus pandemic. Some lost their jobs, others received pay cuts, and many did not get any bonus payments.
As our economy makes its slow recovery in 2021, many companies are also recovering. They now have a better idea of reinforcing their businesses’ vulnerabilities, mitigating risks and creating long-term strategies to manage and emerge stronger from any crisis.
While the coronavirus crisis had drastically reduced job opportunities and salaries in 2020 – especially in trade and tourism, it has also shone a spotlight on growing industries. These include cybersecurity, software engineering, financial services and healthcare.
Nilay Khandelwal, Managing Director of Michael Page Singapore, says, “Singapore’s economy has turned a corner and remains a stable, secure and trusted hub, with seamless connections. As the economy recovers, investment into the market will flourish, and that would drive the demand for talent amid the business recovery climate.”
Michael Page Singapore’s Talent Trends survey report has found that companies are still willing to offer competitive salary packages to the right candidates – with 40% of employers cited plans to increase headcount numbers this year.
Given the economic demands, the sectors earmarked for the highest hiring activity are technology, healthcare and life sciences, banking and financial services, industrial and manufacturing, and FMCG. Here’s what you can expect for salary trends this year:
Tech jobs
Average annual salary increase in 2021 – 3.5%
75% of companies looking to give out more than one month of bonus
Average salary offer for new hires – 15% to 20% more than current or last-drawn salary
Healthcare & Life sciences jobs
Average annual salary increase in 2021 – 2.8%
57% of companies looking to give out more than one month of bonus
Average salary offer for new tech hires – 10% more than current or last-drawn salary
Banking & Financial Services jobs
Average annual salary increase in 2021 – 2.2%
75% of companies look to give out more than one month of bonus
Average salary offer for new hires – 10% to 15% more than current or last-drawn salary
FMCG jobs
Average annual salary increase in 2021 – 2.9%
62% of companies look to give out more than one month of bonus
Average salary offer for new hires – 11% more than current or last-drawn salary
Industrial & Manufacturing jobs
Average annual salary increase in 2021 – 1.6%
25% of companies look to give out more than one month of bonus
Average salary offer for new hires – 10% to 15% more than current or last-drawn salary
The Michael Page Singapore Talent Trends 2021 Report features insights and market sentiment in the Asia-Pacific region on prominent recruitment and talent-related topics including digital readiness, organisational design, flexible work, leadership, performance management and diversity and inclusion. The report also covers salary trends and insights from industry insiders. The results draw from a survey of 12 Asia Pacific markets, with over 5,500 businesses and 21,000 employees, of which 3,500-plus are directors or CXOs.
