SINGAPORE: Singapore’s wage growth is expected to ease in 2026 as businesses take a more cautious stance amid growing geopolitical uncertainties and persistent inflationary pressures.

According to a report released by the Ministry of Manpower (MOM) on Thursday, Singapore’s focus remains on ensuring that wage increases are supported by productivity improvements while safeguarding jobs. The report showed that nominal wages for resident employees rose by 4.9 per cent in 2025, down from the 5.6 per cent increase recorded in 2024.

The moderation in wage growth comes as employers navigate a more challenging economic environment. Businesses are increasingly concerned about rising operating costs, particularly labour expenses, as global uncertainties continue to cloud the outlook.

A survey conducted by an industry group last month found that more than half of the companies polled were worried about labour costs amid an unpredictable global economy. At the same time, Singapore’s labour market has shown signs of softening, with the unemployment rate edging up to 2.1 per cent in the first quarter of the year, compared with 2 per cent in the previous quarter.

The latest data reflects broader concerns over the impact of geopolitical tensions and inflationary risks on business sentiment and hiring decisions.

Prime Minister Lawrence Wong has previously pledged support for workers facing increasingly rapid and unprecedented economic changes. The global environment has become more volatile due to factors such as ongoing conflict in the Middle East and the rapid advancement of artificial intelligence technologies, both of which are reshaping industries and labour markets.

These disruptions are already affecting employment worldwide. Technology giant Meta Platforms and German biotechnology company BioNTech have been among firms that have announced job cuts, highlighting the pressures faced by businesses as they adjust to changing economic conditions.

Singapore’s central bank has also warned of a softer labour market ahead. In April, the Monetary Authority of Singapore (MAS) said labour demand is likely to remain subdued this year as companies adopt a more cautious approach.

The MAS noted that if economic growth weakens for a prolonged period, employers may scale back hiring plans, while layoffs could increase. Such developments could further weigh on wage growth as businesses seek to manage costs and preserve employment in an uncertain environment.

Despite the slower pace of wage increases, Singapore’s labour policies continue to emphasise balancing wage growth with productivity improvements, with the aim of ensuring sustainable income gains for workers while maintaining the competitiveness of businesses.

This article (Pay rises in Singapore expected to cool amid inflation and geopolitical risks) first appeared on The Independent Singapore News.

SINGAPORE: Singapore workers received pay rises for a second straight year in 2025, although wage growth slowed compared with 2024.

The good news is that workers were still better off in real terms. With inflation easing, salaries stretched further, giving employees a stronger boost in purchasing power than the year before.

According to the Ministry of Manpower (MOM) on May 28, nominal wages for full-time resident employees who stayed with the same employer for at least a year rose by 4.9 per cent in 2025, down fro`m 5.6 per cent in 2024. After adjusting for inflation, real wages increased by 4.0 per cent, up from 3.2 per cent the previous year.

Nick Karean/The Independent Singapore News

MOM: Wage Growth 2025

The figures suggest that while pay packets didn’t grow as fast based on data, workers still benefited from a lower cost-of-living environment than in 2024.

More companies remained profitable

MOM’s report showed that business conditions stayed fairly healthy through 2025. More than eight in 10 establishments, or 83.1 per cent, reported making a profit, up from 80.8 per cent in 2024. At the same time, the share of companies reporting losses fell to 16.9 per cent from 19.2 per cent a year earlier.

The data paints a picture of a business sector that stayed resilient despite ongoing global economic uncertainty. Smaller firms were still more likely to report losses than larger companies, mirroring the tougher operating conditions faced by businesses with fewer resources.

Employers became more careful with salary increases for employees

While most employers continued raising salaries for workers, there were signs of greater caution. About 72.4 per cent of establishments increased wages in 2025, down from 78.3 per cent in 2024. Meanwhile, nearly a quarter of firms left wages unchanged, up from 18.5 per cent the year before.

Among companies that granted pay increases, the average wage rise was 5.8 per cent. Employee retention remained the main reason employers chose to increase salaries. In a tight labour market, retaining experienced staff remains a priority for many businesses.

Only 3.1 per cent of companies reduced wages; those that did generally faced weaker business performance than in the previous year. The trend shows that workers still expect wage growth, but businesses are also preparing for economic uncertainty and rising costs.

Wage gains spread across sectors and job levels

One notable finding from the report was that wage growth was broad-based. Rank-and-file employees saw wages grow by 4.8 per cent, junior managers by 5.1 per cent and senior managers by 4.9 per cent. The differences between these groups narrowed, suggesting gains were shared more evenly across the workforce.

Every sector recorded positive wage growth. Administrative and Support Services posted the strongest increase at 7.5 per cent. The sector includes cleaning, security and landscape services, where lower-wage workers continue to benefit from the Progressive Wage Model and Local Qualifying Salary requirements.

Financial Services and Insurance Services also recorded healthy wage growth as demand remained strong for professionals and managers.

Nick Karean/The Independent Singapore News

MOM: Wage Growth by Industry 2025

The accommodation and construction sectors still saw pay increases, but at a slower pace than the previous year, as hiring demand stabilised following the post-pandemic rebound.

Workers can expect real wage growth to stay positive in 2026

MOM expects real wage growth to remain positive in 2026. However, businesses are likely to stay cautious when deciding on salary increases due to inflation risks and geopolitical tensions.

As such, workers may continue seeing pay rises, but probably not at the pace many experienced during the stronger post-pandemic recovery years.

The report indicates that wage growth is still tied to productivity. Sustainable salary increases depend on businesses becoming more productive, workers upgrading their skills and companies maintaining healthy financial performance.

What matters more now than how much salaries increase is how much purchasing power is left for Singaporeans after their everyday expenses are paid.

Read related: Singapore job hiring drops across most sectors despite AI-driven manufacturing demand; employment outlook weakens in the coming months

This article (MOM: Wage growth slowed down for workers in Singapore last year compared with 2024; expected to stay moderate in 2026) first appeared on The Independent Singapore News.

SINGAPORE: Singapore is prepared to pay more to attract new local bus captains, but the harder task is convincing them to stay.

From next year, new Singaporean and permanent resident bus captains will receive a S$450 monthly starting salary increase, along with a higher sign-on bonus of S$2,000. The changes could lift first-year earnings by around S$600 a month, pushing average monthly pay beyond S$4,000 when overtime, allowances and bonuses are included.

The move comes as the public bus sector grapples with a shrinking share of local drivers. The proportion of Singaporean and permanent resident bus captains fell from 54 per cent in 2021 to 41 per cent in 2025, according to Channel NewsAsia (CNA )’s June 5 report. For many existing drivers, however, salary has never been the only issue.

The job starts at 3 am, long before sunrise

Several bus captains said that while better pay would attract newcomers, the realities of the job catch people off guard.

Bus drivers may begin work as early as 3 am to prepare for the first buses leaving depots before dawn. Working hours can be irregular, meal times unpredictable and shifts physically draining.

One common complaint is the split-shift arrangement. Drivers may work the morning rush, take an unpaid break lasting several hours, then return for the evening peak period.

Former public bus captain Muhammad Naz Farihin said these long breaks can make an entire day feel like it’s consumed by work, even though part of it is unpaid downtime. Many newcomer drivers also said they leave within their first year after discovering the demands involved.

Bus drivers don’t just drive a bus

The public usually sees bus captains as people who move passengers from one stop to another. Drivers say the role involves far more.

Besides operating large vehicles safely, bus captains handle customer service issues, manage emergencies and keep services running on tight schedules. Some are trained in cardiopulmonary resuscitation (CPR) and may be among the first to respond during medical incidents.

One bus captain said he hopes the higher salaries will help raise public appreciation of the profession. He argued that the job requires a set of skills that many commuters may not fully notice.

Bus operators are promising changes in bus driving schedules

Associate Professor Walter Theseira from the Singapore University of Social Sciences said bus driving is a specialised role that demands discipline and reliability. Unlike gig work, drivers cannot simply decide not to show up. A missing bus captain can disrupt an entire service.

He also said salaries needed to be competitive enough to attract people who have other job options, including mid-career workers who may already earn higher wages elsewhere.

Bus operators are also promising changes beyond pay. Measures under consideration include reducing split shifts, shortening continuous driving periods and offering better career progression opportunities.

Higher salaries may bring more people through the door. Retaining skilled drivers will likely depend on operators’ ability to make the work more sustainable over the long term.

Buses don’t run on engines alone. They run on people willing to show up before sunrise, navigate traffic safely and carry thousands of commuters to their destinations every day.

This article (SG bus captains: Higher salary offers attract new bus drivers, but long working hours and gruelling split-shifts can’t make them stay on beyond one year) first appeared on The Independent Singapore News.