The average salary will rise to S $ 4,850 in 2022, to S $ 5,000 in 2023 in 2023 – Wired PR Lifestyle Story

Following the pandemic erosion in 2020, Singapore’s wages have risen in 2021 and trends are expected to continue next year as well.

According to official statistics, the median monthly salary has risen, including CPF contributions up 3.2 percent to S $ 4,680 2021 (mid-year data are provided, which is why we already have 2021 data).

Although the government itself does not publish future forecasts, the latest independent report 2021 salary increase and turnover analysis The insurance giant AON predicts that by 2022 wages should rise by another 3.8 per cent. That would bring the median monthly salary to $ 4,850 next year and, if the trend continues, more than $ 5,000 S $ 2023.

Last year it was more than S $ 4,500, in 2016 it was more than S $ 4,000 and in 2010 it was only S $ 3,000.

The basic salary exceeds the total salary

Although income has performed well over the past decade, there are significant changes, albeit small, in the way Singaporeans are paid.

The period between 2015 and 2020 has been stronger than in the previous five years (when post-crisis inflation took off in 2011 and 2012, boosting real wage growth to negative territory) and we can expect the opposite in the coming years. – that is, post-Covid inflation is likely to eliminate some of the gains.

However, there is also a change in basic and total salary, including allowances.

As you can see in the chart below, the annual bonus quota fell from a 2.32-month high of basic salary to 1.79 in the 2020 pandemic as companies were cutting costs. But even before Covid-19, it fell below two months, to 1.94 in 2019.

And although the overall growth for the period was comparable – 3.1% vs. 3.2 (marked in green above) – basic wages have grown slightly faster, suggesting that more employers prefer the forecast of a fixed salary to control annual costs (especially in volatile times).

It also provides stability for the staff, even though a big bonus at the end of the year is always nice.

S $ 6,000 for 2027 and S $ 7,000 for 2030?

You may be wondering what the future holds, given the current unpredictable times and the pandemics behind it.

If, in a highly inflationary scenario, the rise in nominal wages could have an impact, rising at a faster rate, as happened a decade ago after the financial crisis, when monthly wages rose at a rate of five per cent a year.

This would push for more than S $ 6,000 by 2027 and S $ 7,000 by 2030, although, of course, commodity prices would rise faster.

A more realistic and moderate average inflation scenario — like the one we’ve experienced in the last 10 years — would drop to about $ 6,500 by the end of the decade, with an increase in the average price of what you’ve seen since 2010. .

So it would be a moderate and best reference to find out how well you and your family were doing in 2010 and what is expected by 2030.

Featured Image Credit: Singapore Guide