KEY HIGHLIGHTS
- Most Singapore employees can expect a 4% salary increase in 2026.
- Almost 98% of companies plan to raise pay, despite economic uncertainty.
- Logistics, aerospace, and manufacturing roles see the strongest wage growth.
Good news for working Singaporeans: pay packets are likely going up again next year. According to the latest salary outlook, most employees can expect around a 4% salary increase in 2026, keeping pace with what companies gave out in 2025.
Even with higher costs and cautious business sentiment, employers here are still budgeting for raises. For many households juggling housing loans, childcare, and daily expenses, this is a small but meaningful relief.
A new study by Mercer shows that 97.6% of Singapore employers plan to increase salaries in 2026. While this is slightly lower than 99.2% in 2025, it still signals strong commitment to retaining talent in a competitive job market.
Expected Salary Increases by Sector (Singapore, 2026)
| Sector | Expected Salary Increase |
|---|---|
| Logistics & Shipping | 4.9% – 5.5% |
| Aerospace | ~5% |
| High-Tech Manufacturing | ~5% |
| Consumer Goods | ~5% |
| High-Tech / IT (overall) | ~3% |
| Most Other Sectors | 3.2% – 4.5% |
Which Industries Are Paying More?
Not all sectors are moving at the same pace. Industries that play to Singapore’s strengths as a regional hub are clearly leading the way.
Logistics & Shipping, Aerospace, High-Tech Manufacturing, and Consumer Goods roles are seeing salary growth between 4.9% and 5.5%, higher than what companies originally budgeted. These sectors remain critical to Singapore’s trade, supply chain resilience, and export-driven economy.
On the other hand, the broader High-Tech sector is seeing a more modest 3% increase, below earlier expectations. Roles tied to commoditised IT services, legacy systems, and routine support work are facing pressure due to automation, offshoring, and tighter tech spending.
IT Specialists Still Have the Upper Hand
If you’re in tech, the picture isn’t all gloom. Specialised IT roles continue to command stronger pay growth.
Demand is particularly strong for skills in cloud computing, cybersecurity, data platforms, and user acceptance testing. These roles are harder to outsource and are directly tied to business continuity and risk control, which companies cannot afford to ignore.
Put simply: generic IT roles may stagnate, but niche tech skills are still worth good money in Singapore.
What Employers Are Really Looking At When Giving Raises
Salary increases are no longer just about across-the-board adjustments. Companies are increasingly using a more targeted approach.
Key factors influencing raises include individual performance, job promotions, and where an employee sits within their salary band. Those already at the top of their pay range may see smaller increments unless they move roles or take on bigger responsibilities.
According to Eugene Chong, employers also need to factor in rising living costs. With everyday expenses climbing, businesses are under pressure to balance affordability with fairness when deciding salary adjustments.
What This Means for Singapore Employees in 2026
For most Singaporeans, a 4% increment won’t feel life-changing — but it helps. It can offset higher food prices, transport costs, and utility bills, especially for middle-income households.
However, the real winners will be those in growth sectors or hard-to-fill roles. If your skills align with logistics, advanced manufacturing, cybersecurity, or data-related work, your chances of beating the average increase are higher.
For everyone else, this is a reminder to stay relevant. Upskilling and role progression matter more than ever.
Frequently Asked Questions
Will all employees in Singapore get a 4% raise in 2026?
No. 4% is an average. Actual increases depend on your industry, performance, role demand, and where you fall within your company’s salary range.
Which jobs are most likely to see higher pay increases?
Roles in logistics, aerospace, advanced manufacturing, cybersecurity, and cloud-related IT are seeing above-average salary growth due to strong demand and limited talent supply.
Should I change jobs to get a better salary in 2026?
Honestly speaking, switching jobs can still lead to bigger jumps than internal increments. But only if your skills are in demand. For others, internal promotion or reskilling may be the safer move.
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