S'pore firms plan to dial back on raises, bonuses: Survey

Signs of moderation in salary increments and bonuses are showing as employers exercise greater caution amid economic uncertainty, a ManpowerGroup survey of 504 Singapore employers found.

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Fewer employers plan to award raises of 5 per cent or more, with the percentage of companies intending to do so down at 23 per cent for 2025/2026, from 26 per cent a year earlier, the survey showed.

The percentage of employers planning salary increments of 7 per cent or more fell to 5 per cent, from 6 per cent for 2024/2025. More are planning to give out increments of under 3 per cent, with the percentage of such firms up at 21 per cent, from 18 per cent previously.

At the same time, nearly half of the companies surveyed (45 per cent) intend to give out bonuses of exactly one month; the figure was 42 per cent a year earlier.

Fewer employers are planning for bonuses on either end of the spectrum. The share of those looking at giving out bonuses of less than one month fell to 10 per cent, from 11 per cent in 2024/2025.

Slightly over one-third (34 per cent) of firms plan to offer bonuses of up to 1.5 months, and Il per cent intend to give out bonuses above that level. Both figures are down one percentage point from a year earlier.