Singapore’s real wage growth remained at 0.4% in 2023, unchanged from the previous year, according to the Ministry of Manpower (MOM). The report highlighted that while most businesses remained profitable, fewer companies opted to raise wages.

Nominal wages, including Central Provident Fund (CPF) contributions, grew by 5.2% in 2023, down from the 6.5% recorded in 2022. However, the lower inflation rate of 4.8% helped keep real wage growth steady.

The report also noted that 65.6% of companies increased salaries in 2023, a drop from 72.2% in 2022. Firms experiencing reduced profits increased from 22% to 26.8%, influencing wage decisions.

Accommodation, real estate, and financial services saw the highest wage increases but lagged behind 2022’s growth. The administrative sector bucked the trend, showing higher wage growth due to the Progressive Wage Model.

Minister Tan See Leng emphasized the need for wage growth to align with productivity gains, encouraging businesses to continue transforming for long-term sustainability.