INCREASING uncertainty in global economic conditions and weaker than targeted business performances are expected to contribute to the slight dip in average salary increments for 2014 and 2015.

According to the latest pay report by Hay Group, a global management consultancy firm, salaries are set to rise at 4.3 per cent for 2014, lower than 4.9 per cent the previous year.

In a survey of 110 Singapore-based companies - both local and foreign entities - across more than 22 sectors, the projected average pay rise for 2015 is down 0.1 percentage point at 4.2 per cent.