Salary increases, bonus for 2013 still cautious

Hay Group, a global management consultancy, said Monday that they predicted cautious salary increases and bonus for Singaporean workers in the coming 2013 amid continuing uncertainty in the global economy.

According to its survey, "the actual average salary increases are 4.6 percent for 2012, a climb of 0.2 percent this time last year and ahead of the projected 2013 inflation rate of 2-3 percent anticipated by the Monetary Authority of Singapore."

Insurance sector can enjoy the highest average salary increase of 5.5 percent, followed by sectors of fast moving consumer goods and life sciences or pharmaceutical at 5.2 percent this year.

The consultancy also released their predict for the pay increment in 2013 at 4.4 percent, down from this year's actual rise.

On the part of bonuses, the report showed that the actual average variable bonus is 2.6 months for a 12-month period this year, declining from the forecast of 2.7 months at the same period last year. For the coming 2013, the company said the average variable bonus payout is predicted to fall to 2.5 months.

However, the employment situation seems to have picked up in the city-state that 58 percent of the surveyed organizations are planning to increase staffing levels, compared to 50 percent last year.

The survey also showed the overall pay in Asia will increase by 7.5 percent in 2013, with significant pay rises in China, Vietnam, Indonesia and Philippines.

The survey was conducted in September, covering over 505 Singapore-based companies, including both local and foreign-owned companies, from both the private and public sectors.