Nearly half of professionals expect 2.5-5% pay raise in 2025

 30% of employees who received salary increases attributed the change to individual performance rather than promotions.

Nearly half of professionals in Singapore expect a pay increase of 2.5–5%, whilst 31% anticipate a more significant raise of 6–10%.

In its report, Hays found that 30% of employees who received salary increases in the past year attributed the change to individual performance rather than promotions or job changes.

However, despite these increases, 52% of professionals feel their salaries do not reflect their responsibilities, pointing to persistent dissatisfaction with remuneration structures.

The economic outlook for Singapore remains mixed, with 35% of respondents expressing pessimism about the country’s growth prospects over the next two to five years.

Despite these concerns, businesses are planning to expand their workforce, with 46% of companies indicating their intention to increase headcount in 2025.

Workplace trends indicate a strong shift towards hybrid work arrangements. Whilst 49% of companies still require a full five-day office presence, a three-day office week has emerged as the preferred balance for both employers and employees.

Flexibility remains a key factor in job satisfaction, with 47% of respondents prioritising flexible work arrangements, followed by health insurance and additional vacation days.

Talent retention continues to pose a challenge for Singaporean businesses. The most common reasons employees cite for leaving their jobs include low salaries (43%), limited career progression (35%), and poor work-life balance (17%).

In response, companies are doubling down on career development initiatives, performance-based pay structures, and employee well-being programs to improve retention rates and curb turnover.