Employers holding pay hikes steady at 3% to 6%, say HR firms

Outlook for 2026 cautious amid economic uncertainty; prospects differ across sectors

- Sharon Salim

Singapore employees could see salary increments ranging from 3 per cent to 6 per cent on average in 2026, according to recent salary surveys by human resources (HR) firms.

Similar to the outlook for 2025, HR firms said companies remain cautious in pay planning due to economic uncertainty, with some showing signs of easing and moderation in their salary increment budgets for 2026.

“We're seeing more employers moving towards smaller increments and smaller bonuses,” said Ms Linda Teo, country manager of talent firm ManpowerGroup Singapore.

ManpowerGroup said in its recent annual salary and bonus plans report that more bosses (21 per cent) are planning to give smaller increments of less than 3 per cent in 2025-26, up from 18 per cent in 2024-25.

At the same time, fewer employers (23 per cent) are planning pay increases of 5 per cent or more, compared with the previous year’s 26 per cent. The group surveyed 504 employers across several industries in October 2025.

Professional services firm Aon and recruitment firm Persol found that companies here are budgeting about a 4.3 per cent salary increase on average in 2026 - the same as in 2025.

Meanwhile, global talent firm Robert Walters said employees staying on with their current companies could see their salaries increase by 3 per cent to 6 per cent in 2026 to align with inflation. This is higher than the projected 2 per cent to 5 per cent in 2025.

Ms Kirsty Poltock, the firm’s country manager in Singapore, said the projected 3 per cent to 6 per cent increase signals that companies are taking a measured but proactive approach to ensuring they remain attractive to talent while managing costs responsibly.

“While organisations are more cautious in their hiring plans, they also recognise that competitive remuneration is essential to securing and engaging the skilled professionals needed to deliver long-term business priorities.”