The Ministry of Manpower’s (MOM) report on wage practices saw that resident workers had higher purchasing power as their real wages grew by 4% once the fall in inflation was adjusted into the calculation.
Out of the 6,236 private sector firms polled, employee retention was the main cited reason for this pay hike.
MOM also found that fewer companies raised salaries compared with the previous year, with only 72.4 per cent of firms raising wages in 2025 compared to 78.3 per cent in 2024.
