Large firms planning low-wage hikes drop to 66%: survey

SMEs intending to increase LWW wages in the next 12 months also slipped by 5%.

The number of large companies planning to raise wages for lower-wage workers (LWWs) over the next 12 months fell by 3 percentage points to 66% year-on-year (YoY).

The average wage increase planned for the next 12 months also slipped to 5% YoY from 6%, according to the Singapore Business Federation’s National Business Survey 2026.

Amongst the 50 respondents, 30% said they plan to maintain current wage levels, down 1 percentage point, whilst 4% intend to reduce wages, up 4 percentage points.

For large companies planning wage reductions, the average decrease over the next 12 months is 28%, compared with 2% YoY.

Meanwhile, the proportion of small and medium-sized enterprises (SMEs) planning to increase LWW wages over the next 12 months fell by 5 percentage points to 60%, with the average wage increase standing at 12%.

Some 40% of the 269 SME respondents said they plan to maintain current wage levels, up 5 percentage points, whilst just 0.4% plan to reduce wages.

Amongst SMEs planning wage reductions, the average decrease is 10%, down from 28% YoY.

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