Salary measly grew by 0.2 percentage points in 2012

Check out top three sectors giving the highest average bonus payout in 2013.

 In a report released today, Hay Group showed that the actual average salary increases are 4.6 percent for 2012, a climb of 0.2 percent this time last year and ahead of the projected 2013 inflation rate of 2-3 percent anticipated by the Monetary Authority of Singapore.

This year, the Insurance sector can look forward to the highest average salary increase of 5.5 percent, followed by Fast Moving Consumer Goods and Life Sciences/Pharmaceutical, both at 5.2 percent.

Mr Chan said, “Employees in developed markets like Singapore face a tough year ahead, with sluggish growth and pay rises slightly outstripping inflation.

“It is vital that leaders use reward budgets wisely — communicating effectively with staff and being creative with the reward programmes on offer that makes the most sense to employees.”

Meanwhile, average salary increases for 2013 are forecasted at 4.4 percent. Industry-wise, the highest average salary increase forecast is dominated by Life Sciences/Pharmaceutical at 5.2 percent, and both Fast Moving Consumer Goods and Insurance at 5.0 percent.

Bonus payout

The Hay Group report also showed that the actual average variable bonus (i.e. performance-based bonuses excluding annual wage supplement, contractual bonuses) is 2.6 months for a 12-month period, dipping by 0.1 month compared to the average of 2.7 months in September 2011.

A breakdown by employee level revealed that Senior Management will receive an average variable bonus payout of 3.3 months, followed by 2.7 months for Middle Management, 2.4 months for Junior Professionals and 2.3 months for Clerical Support.

Employees in the Chemicals sector will have something to cheer about this festive season with the highest average bonus payout of 3.8 months from the Hay Group survey. Sectors with the next highest actual average bonus payout are Financial Services (3.2 months) and Oil and Gas (3.1 months).

Looking ahead, the forecast average variable bonus payout is 2.5 months for the coming 12 months. The top three sectors with the highest average bonus projection in 2013 are Chemicals (3.3 months), Oil and Gas (2.8 months) followed by Industrial Goods (2.7 months).