Disclaimer: Unless otherwise stated, any opinions expressed below belong solely to the author. Data sourced from the Ministry of Manpower.
Now that inflation has pretty much ground to a halt, with the headline figure dropping to just 0.5% in Aug, it might be a good time to tally up the damage it has done to local salaries. As we already know according to official releases, the median salary, including employer CPF, hit S$5,500 in 2024, up from S$4680 in 2021.
That’s a jump of S$820 or 17.5%.
Unfortunately, cumulative inflation over the three years hit ca. 13.9%, leaving Singaporeans with a net real increase in the value of their incomes of just 3.6%.
However, as always, these figures are quite different when we break them down into smaller categories. Depending on the industry, some—including those in arts & entertainment—have seen their salaries grow by a quarter in nominal and over 10% in real terms. Meanwhile, workers in public administration (surprisingly) as well as social & community services have seen their incomes decline in real terms.
| Industry | Median salary in 2021 | Median salary in 2024 | Nominal change | Real change |
|---|---|---|---|---|
| Arts, Entertainment & Recreation | S$3,803 | S$4,777 | +25.6% | +11.8% |
| Information & Communications | S$6,092 | S$7,605 | +24.8% | +11.0% |
| Financial & Insurance Services | S$7,069 | S$8,736 | +23.6% | +9.7% |
| Transportation & Storage | S$3,168 | S$3,900 | +23.1% | +9.2% |
| Accommodation & Food Services | S$2,457 | S$2,974 | +21.0% | +7.2% |
| Administrative & Support Services | S$2,725 | S$3,296 | +21.0% | +7.1% |
| Real Estate Services | S$4,095 | S$4,908 | +19.9% | +6.0% |
| Manufacturing | S$4,896 | S$5,850 | +19.5% | +5.6% |
| Wholesale & Retail Trade | S$4,285 | S$5,070 | +18.3% | +4.5% |
| Professional Services | S$5,850 | S$6,900 | +17.9% | +4.1% |
| Health & Social Services | S$4,309 | S$5,070 | +17.7% | +3.8% |
| Construction | S$4,200 | S$4,914 | +17.0% | +3.1% |
| Public Administration & Education | S$6,338 | S$7,032 | +10.9% | -2.9% |
| Other Community, Social & Personal Services | S$3,296 | S$3,510 | +6.5% | -7.4% |
It’s clear that depending where you work, your perception of the economic situation over the past three years and its impact on your income is going to be completely different.
Many Singaporeans are significantly better off than three years ago, while quite a few (perhaps explaining the more vocal on the Internet) have every right to feel left behind.
Education pays, but not in raises
One might think that some of these industries have been more generous because their workers are better educated and see their incomes grow faster. But nothing could be further from the truth.
It’s the workers at the very bottom who have seen their incomes grow the fastest:
| Education level attained | Median salary in 2021 | Median salary in 2024 | Nominal change | Real change |
|---|---|---|---|---|
| Below Secondary | S$2,048 | S$2,522 | +23.1% | +9.3% |
| Secondary | S$3,145 | S$3,510 | +11.6% | -2.3% |
| Post-Secondary (Non-Tertiary) | S$3,159 | S$3,450 | +9.2% | -4.6% |
| Diploma & Professional Qualification | S$4,256 | S$5,000 | +17.5% | +3.6% |
| Degree | S$7,351 | S$8,656 | +17.8% | +3.9% |
Those stuck in the middle, with secondary and post-secondary education, have suffered the most. It is likely because they don’t qualify for government schemes like the Progressive Wage Model, which pushes lowest incomes up faster and, at the same time, are not among the most prized workers for their employers either. Squeezed on both ends, they have received the lowest increments through the global inflation crisis and their incomes decreased in real terms.
That said, the most educated workers have barely outpaced the average of +3.6% in real income growth for the entire labour force.
Education does pay, of course, given that degree holders make a median of over S$8,600 per month, but it’s evident from the data that how fast your income adjusts once you’re employed is entirely dependent on the type of business you’re in, not your place on the company ladder.
Salary stagnation might be ending
As I reported earlier this month, there’s hope that 2025 will be remembered as the year when salaries received a real, measurable boost. With mean incomes rising by over 5% in the first half of the year, it may really be felt in the pockets of Singaporean workers given that inflation is no longer eating raises away.
For many, this year might bring a bigger incremental jump in real terms than the previous three years have combined!
But we will know for sure only when the Ministry of Manpower releases the annual figures in January 2026.
- Read other job-related articles we’ve written here.
Featured Image Credit: Dreamstime
