SINGAPORE - Just over half of employers surveyed plan to moderate or freeze wages in 2027.
The Singapore National Employers Federation’s Survey on Wage and Employment Outlook 2026/2027 found that 51% of respondents plan wage moderation or freezes next year, up from 48% for 2026.
The remaining 49% plan wage increases, down from 51% in the previous survey.
Conducted between June and August 2026, the survey covered 320 companies employing close to 160,000 workers across 20 industries, ranging from small and medium-sized enterprises to large employers.
Employers with lower-wage workers were more inclined to raise pay. Among that group, 86% plan built-in wage increases in 2027, down from 96% in the previous survey. The remaining 14% plan wage freezes, while none plans wage cuts for lower-wage workers.
Hiring plans were also cautious. Some 54% of employers do not plan to increase headcount in 2027, down from 58% in the previous survey. The share planning to increase headcount rose to 40% from 33%, while 6% plan reductions, down from 8%.
Rising manpower costs remained the most frequently cited workforce challenge, identified by 83% of respondents for the 12 months from June 2026 to May 2027, compared with 79% for the previous 12-month period. The proportion expecting uncertain business prospects in 2027 fell to 63% from 72% for 2026.
Separately, employers hiring Employment Pass and S Pass holders will face higher qualifying-salary thresholds from Jan. 1, 2027. Outside financial services, the base EP minimum will rise from S$5,600 to S$6,000 and the S Pass minimum from S$3,300 to S$3,600 for new applications.
The Ministry of Manpower has also announced Work Permit levy changes taking effect in 2028. The measures form part of Singapore’s wider adjustments to foreign-worker salary thresholds and levies.
SNEF Council vice-president Kuah Boon Wee said the survey showed that “most employers continue to face significant cost pressures and uncertainties in business outlook.”
Kuah said employers, particularly small and medium-sized enterprises, would need practical support to transform their operations and workforce and improve productivity.
