Singaporean employees can look forward to an increase in salary increments for the year 2023, according to a report by Links International. The report indicates that pay hikes for the year could potentially reach up to 20% as companies strive to attract and retain the top talent in a challenging economic climate.
According to the report, if they want to hire highly skilled people, employers will be more willing to offer a more attractive pay package. This, in turn, could help boost employee morale and productivity.
Tightening of Work Pass Requirements
Singapore has also recently revised its work permit requirements in order to improve local talent hiring. Specifically, the Employment Pass (EP) has been changed to make sure that foreign workers get paid better and to help lower local unemployment rates at the same time.
Links International thinks that these steps will make working conditions better for both local and foreign workers. The report also shows that Singapore’s long-term unemployment rate for professionals, managers, executives, and technicians (PMETs) and non-PMETs has dropped to 0.5% YoY and 0.7% YoY in 2022, respectively.
Higher Salary Increments in 2023
Singaporean employees can expect a surge in salary increments for the upcoming year. Reports indicate that salary increments could reach up to 20% as businesses aim to retain and attract the most skilled individuals in a recession.
Companies Seek to Attract and Retain Top Talent
Employers are more willing to provide appealing remuneration packages to attract highly skilled employees. This can lead to an increase in employee morale and productivity, benefiting both employees and employers.
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Work Pass Requirements Tightened in Singapore
Singapore has revised its work pass requirements, including the Employment Pass (EP), to enhance the recruitment of local talent. This measure aims to improve employment conditions for local and foreign employees while also reducing local unemployment rates.
Boost in Employment Conditions for Local and Foreign Employees
In 2022, the long-term unemployment rate for PMETs and non-PMETs in Singapore fell to 0.5% YoY and 0.7% YoY, respectively. This shows that working conditions for both local and foreign employees are getting better. The recent revisions to work pass requirements are expected to further enhance these conditions.
