Singapore firms plan to dial back on raises, bonuses amid uncertainty: survey

[SINGAPORE] 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.

Fewer employers plan to award raises of 5 per cent or more, with the percentage of firms 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 and more for fell to 5 per cent, from 6 per cent for 2024/2025.

More are planning to give out increments of less than 3 per cent, with the percentage 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 11 per cent intend to give out bonuses above that level. Both figures are down one percentage point from a year earlier.

“We’re seeing more employers moving towards smaller increments and smaller bonuses,” said Linda Teo, country manager of ManpowerGroup Singapore. “This trend reflects broader market practices of balancing cost management with fair rewards, including variable payments that recognise performance and employee contributions.”

She added that these “calibrated measures help businesses navigate uncertainty while supporting workforce well-being and long-term organisational sustainability”.

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Micro-firms most likely to award highest and lowest increments

Construction and real estate was the sector with the most competitive increments, with 33 per cent of employers planning to award increments of 5 per cent or more.

The finance and insurance sector ranked second, with 27 per cent of employers likely to offer raises of 5 per cent or more. Following this were the manufacturing sector as well as the tech and IT services sector, at 26 per cent each.

The hospitality sector as well as the utilities and natural resources sector had the lowest proportion of employers planning increments of 5 per cent or more, at 14 per cent.

Notably, micro-firms, or companies with fewer than 10 staff, are most likely to offer salary increments at both the upper and lower ends of the spectrum.

Such firms recorded the highest percentages for employers planning increments of 7 per cent and above (9 per cent), and for employers intending to offer increments of less than 3 per cent (55 per cent).

Finance and insurance offer most generous bonuses

Micro-firms are also the most likely to award bonuses of less than one month, with 36 per cent of such employers planning such bonuses.

Very large enterprises, with 1,000 to 4,999 staff, have the largest proportion of those intending to give out bonuses of more than 1.5 months, at 22 per cent.

Among sectors, firms in finance and insurance offer the most generous bonuses, the survey found.

The sector recorded the highest percentage of employers (58 per cent) intending to award bonuses of more than one month for 2025/2026. Of this group, 19 per cent planning for bonuses of more than 1.5 months.

The tech and IT services sector followed, with 55 per cent of employers intending to give out bonuses of more than one month; of this, 13 per cent are likely to award bonuses more than 1.5 months.

The hospitality sector had the lowest percentage of employers planning bonuses of more than one month (29 per cent), followed by the public sector, health and social services sector (36 per cent).