\n<\/p>\n
\u201cLooking ahead to 2026, real wage growth is expected to remain positive, although firms are expected to remain measured in their wage increases amid geopolitical uncertainties and inflationary pressures,\u201d said MOM.<\/p>\n
Over the longer term, sustaining real wage growth will depend on the economic outlook, productivity improvements, workforce upgrading as well as wage-setting practices, said the ministry.<\/p>\n
The ministry said most establishments were supported by \u201cbroad profitability\u201d in 2025 and had raised wages.<\/p>\n
More firms \u2013 83.1 per cent \u2013 reported that they were profitable in 2025, compared to 80.8 per cent in 2024.<\/p>\n
The proportion of firms that reported stable or improved profitability was 64.1 per cent, similar to 62.7 per cent in 2024.<\/p>\n
Fewer firms \u2013 16.9 per cent \u2013 reported a loss in 2025, compared to 19.2 per cent in 2024.<\/p>\n
In terms of salaries, the ministry found that fewer firms \u2013 72.4 per cent \u2013 granted employees wage increases in 2025, compared to 78.3 per cent in 2024.<\/p>\n
More establishments kept wages unchanged \u2013 24.5 per cent in 2025, up from 18.5 per cent in 2024.<\/p>\n
Where wage increases were granted last year, the increments averaged 5.8 per cent.<\/p>\n
This reflects that employers showed signs of greater prudence in wage changes for 2025, said MOM.<\/p>\n
Employee retention remained the most commonly cited reason for raising wages.<\/p>\n
Only 3.1 per cent of firms cut wages, down slightly from 3.2 per cent in 2024.<\/p>\n
The firms that cut wages generally experienced weaker business performance than in 2024.<\/p>\n
Where there were wage cuts, the reductions averaged 3.7 per cent.<\/p>\n
The National Wages Council\u2019s recommendation for December 2024 to November 2025 was for employers to reward employees with fair and sustainable wage increases, taking into account sustained productivity growth over the long term.<\/p>\n
The council said that employers who have done well should reward their employees with built-in wage increases and variable payments.<\/p>\n
According to the MOM data on Thursday, 79.4 per cent of firms that were profitable and did much better than the previous year raised wages in 2025. The remaining 18.1 per cent cut employees\u2019 wages, and 2.5 per cent did not change wages.<\/p>\n
Among firms that were profitable and did as well as the previous year, 76.3 per cent raised wages, while 22.6 per cent cut wages and 1.1 per cent kept them the same.<\/p>\n
Asked by reporters at a briefing why some profitable firms did not raise salaries, apart from greater prudence, Mr Ang Boon Heng,\u00a0director of MOM’s manpower research and statistics department, said that some employers feel they are already paying their employees at the industry benchmark.<\/p>\n<\/div>\n
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