Nine in 10 F&B firms face hiring strain as 61% of workers seek better pay

The sector also faces weaker demand, with sales down 2.3% in June.

Nearly nine in 10 (87%) food and beverage (F&B) employers say living costs are affecting their ability to hire and retain workers, as employees increasingly prioritise pay that keeps pace with their expenses, according to Indeed.

The group’s Cost of Living Report 2026 found that 61% of F&B workers said better pay relative to living costs was a top consideration for their future career decisions.

The pressure comes as the government is set to raise the minimum qualifying salary for Employment Pass holders to $6,000 from $5,600, and for S Pass holders to $3,600 from $3,300, taking effect in January 2027 for new applications.

The Restaurant Association of Singapore said the changes, together with an increase in the local qualifying salary, will put further pressure on already tight margins in the F&B sector.

The sector is also facing weaker demand, with F&B sales falling 2.3% year-on-year in June, reversing a 0.1% increase in May, according to the Singapore Department of Statistics.

Indeed’s findings form part of a survey of 813 workers and 415 employers in Singapore. 

Across industries, 78% of employers reported some negative impact from living costs on hiring and retention, whilst 59% said they had observed rising salary expectations among employees.

Financial pressure is also influencing workers’ willingness to move jobs, with just over half (52%) actively seeking or open to higher-paying opportunities.

“When household budgets are under pressure, it is understandable that pay becomes a bigger factor in career decisions,” said Saumitra Ranjan Chand, career expert at Indeed for Singapore and India.

“But workers aren't simply thinking about whether their next job pays more. They're also thinking about whether that pay will keep up with what life costs,” he added.

The proportion rises amongst those under greater financial strain. Nearly 70% of workers who described their financial situation as highly stressful said they were actively searching for better-paying jobs.

This is in comparison with 51% of workers in a difficult financial situation and just 10% of those whose salaries support them comfortably, the report found.

Meanwhile, 53% described their salaries relative to living costs as barely enough, financially difficult or highly stressful, with everyday expenses and housing amongst the main pressures cited.

Pay relative to living costs ranked as a top consideration for future career decisions for half of workers, ahead of job stability and security at 42%, and simply earning a higher salary at 39%.

Chand said higher salary expectations do not necessarily mean companies must implement broad pay increases.

“The priority is understanding where the risk of employees leaving is highest and what those employees actually value, he added.