Singapore companies are keeping a tight rein on salary hike in 2026, even as their turnover levels remain among the highest in South-east Asia, according to a new survey.
Professional services firm Aon found that companies here are budgeting a 4.3 per cent salary increase in 2026 – the same as the actual growth this year.
Conducted from July to September, Aon’s latest Salary Increase and Turnover Survey covered over 700 companies and their regional offices across more than 15 industries in Singapore, Indonesia, Malaysia, Thailand, Vietnam and the Philippines.
Across sectors, life sciences and medical devices firms in Singapore are expected to offer the largest pay bump at 4.6 per cent.
Mr Rahul Chawla, Aon’s partner and head of talent solutions in South-east Asia, said life sciences as a sector tends to be a “good paymaster”. These companies also appeal to talents who are driven by purpose, like those who want to contribute to improving lives.
On the other end of the spectrum, the energy sector is budgeting the smallest salary increase at 3.5 per cent, reflecting more cautious sentiment.
Regionally, companies in Vietnam are budgeting the highest salary hike at 7.1 per cent in 2026, followed by Indonesia at 5.9 per cent and the Philippines at 5.2 per cent.
According to the Aon survey, turnover levels in Singapore firms during the period from June 1, 2024 to June 1 this year remained among the highest at 19.3 per cent in the region, just behind the Philippines (20 per cent).
Voluntary exits accounted for most attritions in Singapore at 12.7 per cent, while involuntary exits stood at 6.6 per cent.
Compared to its regional peers, Singapore’s involuntary turnover rate was the highest, while Vietnam recorded the lowest rate at 2.1 per cent.
Across industries in Singapore, the manufacturing sector saw the highest overall turnover (26 per cent) and voluntary turnover (20.9 per cent) rates.
Mr Chawla said this could be due to older workers exiting the industry voluntarily. The other possibility is that the sector is not appealing to workers.
The Straits Times
