- Joined
- Aug 8, 2008
- Messages
- 3,619
- Points
- 48
http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_373738.html
Local real wages will shrink
By Michelle Tay
According to a survey by global consulting firm Hay Group, the median salary increase here for the next 12 months is projected to be 1.5 per cent. -- PHOTO: AFP
SALARIES in Singapore will tend to rise by less than the inflation rate this year - so real wages will actually shrink.
According to a survey by global consulting firm Hay Group, the median salary increase here for the next 12 months is projected to be 1.5 per cent.
This is the lowest rise in 13 years - since Hay Group's first survey in 1997 - said the firm, which surveyed 300 Singapore-based companies in both the private and public sectors in March.
With inflation hovering at 1.6 per cent, the firm said disposable income would ultimately still have shrunk by the end of the year.
Companies polled in the survey said salary increases would be 'preferentially given' to lower-level employees to help them cope with inflation.
Hay Group said this was 'a measure of the times'.
In April last year, before the financial crisis took hold, the firm had forecast a salary increase of 5.4 per cent for this year. This was revised down to 3.4 per cent in December last year.
The survey also found that 43 per cent of the companies polled are planning to freeze salaries, including promotion increments, for the next 12 months; while 21 per cent said that they will be deferring salary increases in the next 12 months.
Mr Christian Vo Phuoc, Hay Group's country manager for reward information services, said: 'Just one year ago, we were experiencing high inflation and employers were looking at one-off adjustments to help employees cope. Now the situation is reversed where employees are asked to do more with less to help their employers cope with the downturn.'
Even performance-based bonuses may not be entirely safe in this climate.
Read the full report in Friday's edition of The Straits Times.
Local real wages will shrink
By Michelle Tay
According to a survey by global consulting firm Hay Group, the median salary increase here for the next 12 months is projected to be 1.5 per cent. -- PHOTO: AFP
SALARIES in Singapore will tend to rise by less than the inflation rate this year - so real wages will actually shrink.
According to a survey by global consulting firm Hay Group, the median salary increase here for the next 12 months is projected to be 1.5 per cent.
This is the lowest rise in 13 years - since Hay Group's first survey in 1997 - said the firm, which surveyed 300 Singapore-based companies in both the private and public sectors in March.
With inflation hovering at 1.6 per cent, the firm said disposable income would ultimately still have shrunk by the end of the year.
Companies polled in the survey said salary increases would be 'preferentially given' to lower-level employees to help them cope with inflation.
Hay Group said this was 'a measure of the times'.
In April last year, before the financial crisis took hold, the firm had forecast a salary increase of 5.4 per cent for this year. This was revised down to 3.4 per cent in December last year.
The survey also found that 43 per cent of the companies polled are planning to freeze salaries, including promotion increments, for the next 12 months; while 21 per cent said that they will be deferring salary increases in the next 12 months.
Mr Christian Vo Phuoc, Hay Group's country manager for reward information services, said: 'Just one year ago, we were experiencing high inflation and employers were looking at one-off adjustments to help employees cope. Now the situation is reversed where employees are asked to do more with less to help their employers cope with the downturn.'
Even performance-based bonuses may not be entirely safe in this climate.
Read the full report in Friday's edition of The Straits Times.
