Employers plan pay rises as 2026 talent demand stays strong

More than half, or 55%, plan to hire contractors in 2026, mainly for short-term or project-based needs (74%).

Broad-based salary increases are expected across most sectors in Singapore next year, with nearly all employers in accounting and finance, supply chain and procurement, sales and marketing, and HR and business support projecting higher compensation.

According to a survey by Robert Walters, 98% to 97% of companies in these sectors intend to raise pay as talent shortages and competition remain acute.

Overall, 69% of employers say they will give at least 3% salary increases to current staff in 2026, while 56% plan to offer more than 6% to new hires.

Professionals who switch jobs may see raises between 5% and 15%, with top-end jumps of up to 20% for roles in artificial intelligence and cybersecurity. For those who stay in their roles, pay adjustments are likely to range from 3% to 6%.

Despite these intentions, a gap persists between what companies are willing to offer and what candidates expect.

Whilst 27% of employers anticipate giving more than 10% raises to new hires, 83% of jobseekers say they are looking for increases above that level, including 23% who are targeting more than 20%.

Amid tighter labour markets, employers are increasingly turning to flexible talent models. More than half, or 55%, plan to hire contractors in 2026, mainly for short-term or project-based needs (74%), to work around headcount limits (36%), or to trial potential hires (33%).

The workplace impact of artificial intelligence is also a growing concern. 78% of companies expect that up to half of their workforce will need retraining or upskilling due to AI within five years.

Employers are prioritising skills such as critical thinking and fact-checking (71%), data analysis (59%), adaptability (44%), and ethical decision-making (41%).

At the same time, workers are expressing concerns about job loss through automation (48%), algorithmic bias (42%), and a lack of training opportunities (41%).

Hiring remains challenging, with 72% of employers citing a shortage of qualified candidates. 53% report difficulty meeting salary expectations.

Other hurdles include candidate reluctance to change roles and strong competition leading to frequent counteroffers. Employers say soft skills like communication, collaboration, and problem-solving are increasingly important in candidate evaluations.

Beyond salary, workers value flexibility, job stability, and workplace culture. Flexible work arrangements are cited by 42% of talent as a key draw, followed by job security at 39% and inspiring colleagues and culture at 34%.

The most common benefits offered include bonuses (80%), parental leave (71%), flexible or remote work (65%), medical insurance (65%), and dental coverage (58%).

Attrition is expected to be highest in supply chain and procurement (82%), followed closely by accounting and finance (79%), technology and transformation (78%), and sales and marketing (78%).

The most in-demand roles include financial analysts, fintech and quant professionals, risk and compliance specialists, HR business partners, heads of growth, planners, and experts in cybersecurity, data, AI, and cloud.