In this article, we will give information about the average salary in Singapore, it may be useful for those who are seeking knowledge related to the salary there. Let’s keep reading this article!
General Information About The Labor Market in Singapore
The employment market in Singapore is developing and showing cautious optimism. Also, the demand for skilled professionals continues to grow.
According to the Ministry of Manpower, employment rebounded in 2019 compared to the previous year, expanding by 55.000 jobs. Service sector jobs made up nearly three-quarters (72%) of the job growth, while other sectors more modest gains.
The digitisation is expected to drive many job opportunities in Singapore, particularly within cyber-security and fintech. Many business owners are shifting their services and operations into digital, so there is an increasing demand for talent with project management and technology skills to facilitate such change.
The companies must also focus on professional development on internal staff and hiring staff with the right skill sets. It is to adapt to the rising tide of economics and prepare for the digital transformation.
The combination of constant change, ongoing technological developments, and skills shortages eventually have led Singaporean businesses to proactively hire the required skill sets and also invest in upskilling initiatives.
In order to have a skilled workforce, a business owner has to look at very detailed salary information, as well as the job seekers usually do. Hiring a skilled workforce for a specific job might need a little higher salary than the other.
That is why, in this article, you will be given information about the general average salary in Singapore, salary comparison by education, by experience, and by industry. Thus, you will know what is the best for you!
General Information About the Average Salary in Singapore
The average monthly household income measures the combined incomes of all the people living under the same roof. It includes every form of income such as salaries, employer’s CPF wage contributions, and investment returns.
Household income is the sum of the gross income of all the members of a household. For households with at least one working person, the median household income for Singaporeans is at $9.293.
However, the median household income from work per household member is $2.792. In 2017, the median household was $9.023 and it was indicating a 3% increment in the year of 2018.
The top 10% of Singaporeans bring home $13.581 per month per household member, while 12.1% of Singapore’s household is without monthly income from work. These are households with no working people.
Median monthly household income from work increased over the last 10 years. From 2009 to 2014, the median monthly household income from work rose by 18% cumulatively or 3.4% per annum. For the next years from 2014 to 2019, it continued to record healthy real growth of 13% cumulatively or 2.5% per annum.
Furthermore, when you work in Singapore, you can get additional payments, such as overtime, bonus, Annual Wage Supplement (AWS), productivity incentive payments, and allowances for travel, food, and housing. However, it depends on your company or industry that you will be working for.
Average Salary in Singapore: Comparison by Experience
The most important factor in determining salary is the level of experience. When you expect a certain amount of salary, you will need a higher experience too, because naturally the more years of experience the higher the wage.
For instance, an employee who is having experience from 2 to 5 years earns on average 32% more than a fresh graduate and junior across all industries and disciplines. A professional with 5-year experience tends to earn on average 36% more than those 5 years or less of work experience.
On the other hand, when you hit the 10 years mark, you will get salary increases by 21% and an additional 14% for those who have crossed the 15 years mark. Those figures are presented as guidelines only, as the numbers will become more significant if you consider one job title at a time.
Salary Comparison by Education
It is well known that higher education equals a bigger salary, and getting to know if it’s true or not, let’s find the comparison below.
Workers with a certificate or diploma earn on average 17% more than their peers who only reached the high school level. Employees who earned a Bachelor’s Degree earn 24% more than those who only managed to obtain a certificate or diploma.
Meanwhile, professionals who attained a Master’s Degree are awarded salaries that are 29% more than those with a Bachelor’s Degree. Finally, Ph.D. holders earn 23% more than Master’s Degree holders on average while doing the same job.
Salary Comparison by Industry
The companies in thriving industries tend to provide higher and more frequent raises, but the situation of any company is closely related to the economic situation in the country or region. This fact tends to change frequently, however, we will give you a top 5 highest paying job for each industry. Let’s see if your dream industry is listed below or not!
Accounting and Finance (Commercial Business)
According to the report, the accounting and finance sector has always been prominent and remains prime for growth. The government is planning to create 2.000 new jobs in the sector by 2020.
Accounting and Finance (Financial Service)
Same as above, many people are looking for accounting and finance (financial service) as their main jobs. As the government will create new jobs this year, so people will have a chance to get the job for themselves.
The report predicts that there will be heavy expectations on HR professionals these days. They are here to aid and advise employees in identifying relevant and in-demand skill sets, and also provide the means for employees to acquire them.
Many people are looking for jobs in the marketing sector too, and their main job description is to bring the businesses to more consumers. Those working in marketing would also need to keep the industry developments, so they are able to implement great strategies across various marketing channels.
The Monetary Authority of Singapore (MAS) revealed in 2017 that they plan to create 3.000 jobs in the financial industry each year, with an additional 1.000 jobs per year expected to come from the fintech sector. MAS is also said to be working on the adoption of technology including blockchain and artificial intelligence to strengthen Singapore’s digital transformation.
All the information above about the average salary in Singapore will help you to decide whether you want to take a job in Singapore or not, but the necessary thing is you need to prepare and know what is the industry that you really want. In conclusion, the salary might interest you in deciding a job, but you need to gain your experience and skillset if you want to get a certain amount of salary! Viettonkin able to help you to set up any payroll and salary for the company around South East Asia.