Real wages rose faster in 2025 even as pay increases slowed, MOM report shows

Singapore workers saw their nominal wages – the actual dollar figure on their payslip – grow by 4.9 per cent in 2025. That was slower than in 2024, when wages rose 5.6 per cent.

But the figure that matters more to workers is real wage growth, which accounts for inflation.

When prices rise faster than wages, workers effectively earn less even if their salaries increase. Last year, the reverse happened: inflation eased sharply to 0.9 per cent in 2025, down from 2.4 per cent in 2024.

Real wages rose 4 per cent, up from 3.2 per cent the year before.

The Ministry of Manpower’s (MOM) Report on Wage Practices 2025, released on 28 May 2026, provided these insights.

In simple terms, workers’ money went further in 2025 than in 2024.

More companies were profitable, but some held back on pay rises

Profitability rose to 83.1 per cent in 2025, up from 80.8 per cent in 2024, creating a positive backdrop for wage increases.

Yet, firms were cautious about linking profits to pay. The share granting raises fell from 78.3 per cent in 2024 to 72.4 per cent in 2025.

More companies kept wages unchanged—24.5 per cent, up from 18.5 per cent. Only 3.1 per cent cut wages.

Among employers granting raises, staff retention was the top reason. The average increment was 5.8 per cent.

All worker groups saw wage gains, and the gap between them narrowed

Wage growth was positive across all categories of employees in 2025:

• Rank-and-file workers: 4.8 per cent
• Junior management: 5.1 per cent
• Senior management: 4.9 per cent

While the pace was slower than in 2024 for all groups, a notable development was that the gap in wage growth between rank-and-file and managerial staff narrowed considerably.

This indicates 2025 wage gains were broader, benefiting all worker levels more evenly.

Which sectors saw the highest, and lowest, wage growth?

Wage growth was positive across every industry in 2025, though most sectors recorded a slower pace than the year before.

Workers in Administrative and Support Services – which includes cleaners, security officers, and landscaping workers – saw the highest wage growth at 7.5 per cent.

This was partly driven by the Progressive Wage Model (PWM), a framework that ties pay increases to skills upgrading and productivity improvements for lower-wage workers in these sectors.

Workers in Financial Services (5.9 per cent) and Insurance Services (6.6 per cent) also saw stronger-than-average gains, driven by continued demand for skilled professionals.

At the other end of the spectrum, workers in Accommodation and Food and Beverage Services saw wage growth of 3.9 per cent each, followed by Construction at 4 per cent and Manufacturing at 4.1 per cent.

For Accommodation, the moderation followed an exceptional run of wage increases during the post-pandemic recovery in 2022 and 2023, when a surge in tourist arrivals drove up demand for workers.

What to expect in 2026

Looking ahead, the report projects that real wage growth will remain positive in 2026, but firms are expected to be cautious given ongoing geopolitical tensions and uncertainty around inflation, which the Monetary Authority of Singapore forecasts will rise to between 1.5 and 2.5 per cent this year.

Workers covered under the PWM and those in sectors with strong labour demand are likely to continue seeing more structured wage progression, while the broader trajectory will depend on business conditions and productivity improvements across the economy.

The Manpower Research and Statistics Department, Ministry of Manpower, publishes the Report on Wage Practices 2025. This report is based on a survey of more than 6,200 private sector establishments.