Senior staff and managers in Singapore are now expected to receive a 5% managerial pay hike. It sounds like the best increase in their pay! So that sounds like good news, right?
What does it tell us about the city-state economy? Also, how are Singaporeans of working-age benefit from this?
While 48% of surveyed companies across Asia revealed their plan to increase their employees’ income, 58% of Singapore companies profess that this increase will soon happen in our own yard.
The managerial pay hike is a reflection that Singapore’s economy is stable. As a result, more works are available despite the unemployment rate recently hitting a six-year high of 2.2%. The city-state is still one of the countries where individuals can easily get a job. However, for some reason, the unemployment rate is increasing.
The economy is getting stable. 93% of companies in Singapore expressed their intent to keep or raise the number of their employees this year.
To retain their employees, they will increase the income of those in managerial positions. In addition, they will continue the employee engagement activities, career progression, and development programs. Most companies are now open to giving medical benefits, annual leave, and completion bonuses.
The ageing population is also becoming more in demand than in the past. It seems that retaining or hiring experienced workers and training the new employees will be more efficient. The younger population of the working age must learn more skills to advance on their career ladder or find a more fitting niche role.
The main beneficiaries of increased wages are the digital, technology and healthcare sectors.
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While Singapore’s economy has been stable, this does not mean that we are safe from inflation.
Every year the cost of living rises by about 3% a year. So your housing, rent, and other necessities are getting more expensive. What you can buy with your S$100 might cost double in the next couple of years. If your income remains static, you won’t be able to afford your needs in the near future.
The managerial pay hike is not actually a bonus. It is a way to help you keep up with the inflation. The new wage is also a means to know how Singaporeans fare amidst the current economic status. If you still feel that it is hard to survive despite the wage hike, then the economy is not as good as it seems.
On the other hand, if this helps the Singaporeans alleviate the impact of inflation on their daily living, the economy is indeed stable.
Your increased managerial pay hike is not a reward. Instead, it gives you a work-life balance as the cost of living goes up. It simply means you still need to continue saving up.