Singapore tech salaries down in 2023, but data scientists get biggest pay jump

TECH salaries in Singapore took a dip in 2023, with software engineers earning 1 per cent less, according to a report that drew on more than 422,000 salary data points across roles and countries.

The dip in earnings noted in tech-talent platform NodeFlair’s report is in contrast to an increase of 7.6 per cent in 2022.

Across junior to managerial roles, median salaries either fell or were flat. The median salary for a junior-level role was flat at S$5,000, but that for a manager role dipped 20 per cent to S$11,000, down from S$13,750 in 2022.

However, data scientist roles copped the biggest increase in salaries last year, up 11.3 per cent. Median salaries rose across all roles: Lead roles made the biggest leap, at 14 per cent to S$14,187, followed by mid-level roles at 13 per cent to S$9,000.

The increase in data scientists’ salaries reflects the growing interest and investment in the artificial intelligence (AI) sector, with investors and companies having poured in money and resources to harness the gains promised by the generative AI wave introduced by ChatGPT.

Ethan Ang, chief executive officer and co-founder of NodeFlair, said: “As we step into 2024, the tech industry grapples with talent challenges amid the rise of generative AI and financial prudence.”

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NodeFlair’s report noted that there were significant salary disparities between the 10th and 90th percentile among software engineers. Managers at the 10th percentile were making S$7,000, and those in the 90th percentile, S$20,500.

Blockchain engineers took a 5.4 per cent dip in salaries in 2023. The junior engineers bore the brunt of this drop, at 11.7 per cent. Median salaries for junior engineers fell 10 per cent to S$6,750; among senior engineers, the median salary fell 5 per cent to S$10,000. The median salary for mid-level engineers stayed flat at S$9,750.

The dip in salaries reflects the current funding winter in South-east Asia. But NodeFlair also noted that salaries are still higher than two years ago, suggesting a move to a balanced and realistic compensation structure.

Of the 15 most-searched companies in Singapore on NodeFlair, 10 of them pay more than 20 per cent above the median salary. Of the remaining five companies, four paid at least 10 per cent above the median salary, pointing to compensation being key to attracting talent.

Meta paid the most out of the 15 top searched companies, at 52.7 per cent above median, followed by Google, which paid 39.9 per cent above median.

Tech workers appear to be open to accepting a less-than-perfect company culture for salary expectations. Out of the 15 companies, nine maintained a Glassdoor rating above the median score of 3.8. This is a drop from 2022, when 13 out of the 15 companies had Glassdoor ratings above 3.8.

Glassdoor ratings are based on a five-point scale, with scores of 3.5 to 4 signifying employees are “satisfied”. The ratings are based on employee reviews posted on Glassdoor, an employer-review site.

Compensation aside, stability appears to be another key factor for tech workers; NodeFlair’s Ang said individuals are drawn to companies that are financially stable and committed to avoiding layoffs.

“This shift underscores a broader change in priorities, emphasising practical financial considerations over the trends of previous years, when work-life balance and employee benefits held greater prominence in the talent landscape,” he said.

NodeFlair expects tech workers’ salaries to recover as the economy rebounds in 2024, although the recovery will be uneven: the salaries of AI and data-science professionals are likely to grow more strongly in the race to attract and retain talent.

Competitive salaries and financial stability will hence likely remain key considerations for jobseekers, prevailing over employee benefits and office culture.

But with the median salaries of software engineers in Singapore far outpacing those of their counterparts in India, Malaysia, the Philippines, Vietnam, Indonesia and Taiwan, employers may be forced to look outside the Republic, taking to cross-border and remote hiring to rationalise costs when they expand their tech teams.

AI will likely play a larger role in the hiring process this year, with AI tools being used for coding assessments. This means a transformation in the interview and assessment process, though measures to safeguard the integrity of the hiring process will likely be introduced.

“In balancing financial prudence with innovation, investing in AI solutions to boost employee productivity is a strategic imperative. It’s about optimising resources wisely for long-term efficiency gains and sustainable growth,” said Ang.