Senior staff and managers in Singapore are now expected to receive 5% increase in their pay! Sounds like good news, right?
What does it tell us about the city-state economy and how are Singaporeans in working age benefit from this?
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While 48% of surveyed companies across Asia revealed their plan to increase their employees’ income, 58% of companies in Singapore profess that soon this increase will happen in our own yard.
What led to this welcoming development?
The higher pay is a reflection that Singapore’s economy is stable. There are more works 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.
As a response, with the economy getting stable, 93% of companies in Singapore expressed their intent to either 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 for giving medical benefits, annual leave, and completion bonuses.
The aging population is also becoming more in demand than in the past. It seems that by retaining or hiring experienced workers, training the new employees will be more efficient. The younger population at the working age are now expected to learn more skills to advance on their career ladder or find a more fitting niche role.
The main beneficiaries of increased wage are those in digital, technology and healthcare sectors.
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Your Personal Finances
While it has been reported that 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. 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, then you won’t be able to afford your needs in the near future.
The 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 the 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 in their daily living, then the economy is indeed stable.
Your increased pay is not a reward, it gives you the work-life balance as the cost of living goes up. This simply means you still need to continue saving up.
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