Singapore workers’ nominal wages including employer CPF contributions grew 4.9% in 2025, slowing from 5.6% in 2024, the Ministry of Manpower reported on May 28, 2026 [1, 2, 3, 4, 5]. After adjusting for inflation, real wages rose 4%, up from 3.2% the previous year [1, 2, 3, 4, 5]. Overall inflation averaged 0.9% in 2025, down from 2.4% in 2024 [1, 3, 4, 5]. Core inflation fell to 0.7% from 2.8% in 2024 [2].
Fewer firms raised wages last year, with 72.4% granting increments in 2025 compared with 78.3% in 2024 [1, 2, 3, 4]. More firms kept wages unchanged (24.5% versus 18.5%), while only 3.1% cut wages, slightly fewer than 3.2% the year before [1, 2, 3, 4]. Among firms that raised wages, the average increment was about 5.8% [2, 3, 4]. The Ministry said employee retention was the main reason cited for wage increases [1, 2, 3, 4].
Profitability among businesses improved, with 83.1% profitable in 2025, up from 80.8% in 2024 [1, 2, 3, 4]. The share of firms reporting stable or improved profits rose to 64.1% from 62.7%, and loss-making firms fell to 16.9% from 19.2% [2, 3, 4]. Wage growth was positive across all sectors but generally slower than in 2024 [1, 2, 3, 5]. The administrative and support services sector recorded the highest wage growth of 7.5% in 2025 [1, 5].
By employment grade, rank-and-file workers saw wage growth of 4.8%, junior management 5.1%, and senior management 4.9% in 2025 [1, 3, 4]. Growth for rank-and-file and junior management fell compared to 2024 [1, 3, 4]. The Ministry highlighted that the narrowing gap between nominal and real wage growth reflected lower inflation supporting workers’ living standards [5]. They noted, “Although nominal wage growth moderated from the stronger pace seen in 2024, real wages improved, supporting workers’ purchasing power.” [5]
The Ministry also said, "Looking ahead, wage growth is expected to remain positive but moderated amid a more uncertain global environment and inflation risks. Firms are likely to be measured in wage increases." [1] Labour demand in 2026 is expected to be subdued due to geopolitical and inflation uncertainties [2, 6, 5]. Prime Minister Lawrence Wong pledged support for workers affected by global economic disruptions including risks from technology and geopolitical tensions [6].
Singapore’s unemployment rate edged up slightly to 2.1% in the first quarter of 2026 from 2.0% the previous quarter [6]. The Ministry’s report outlines these trends as key indicators for wage policies and economic conditions affecting workers this year [1, 2, 3, 4, 5].
