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Average Salary in Singapore

In 2024, the average monthly salary in Singapore is reported to be around 8,450 SGD (6,261 USD). The yearly figure would be the monthly amount multiplied by 12, giving an annual average of approximately 75,132 USD.

What is the Average Salary in Singapore

In this section, you will discover salary progression in Singapore, distinguish between average and median salary figures, and understand how salary varies across different age groups.

Historical Salary Data

The historical salary trajectory in Singapore has shown a steady incline. By 2021, the median gross monthly salary for full-time permanent jobs had grown to SGD 3,800, suggesting a responsive upward trend in the nation’s pay scale. The following year, 2022, further solidified this growth across various industries.

Average vs. Median Salary

When differentiating salaries, it’s crucial to distinguish between Average Salary and Median Income. The average salary, which aggregates the total income across all earners, stood at USD 60,600 per year, according to a 2024 overview. Conversely, the Median Gross Monthly Income, less influenced by extreme values at either end, was reported at SGD 4,563 when including employer CPF contributions.

Salary by Age Group

Salaries in Singapore also vary according to an individual’s Age Group. Younger professionals generally start with lower earnings, which incrementally increase as they gain experience. Precise data for 2024 highlights that different age brackets see distinct Salary Comparisons; however, an overarching trend reflects that income typically escalates to a particular age before stabilizing.

Salary Structure in Singapore

In Singapore, salaries consist of various components, including mandatory Central Provident Fund (CPF) contributions and additional wage elements such as overtime pay and bonuses. Understanding these aspects is essential for employers and employees to ensure compliance with local regulations and a clear view of income expectations.

CPF Contributions

The Central Provident Fund (CPF) is a mandatory pension savings scheme for working Singaporeans and permanent residents. It is designed to fund retirement, healthcare, and housing needs. Employers and employees make monthly contributions based on the employee’s wage level. The contributions are divided into three accounts:

  • Ordinary Account (OA)
  • Special Account (SA)
  • Medisave Account (MA)

The CPF contribution rates vary depending on the individual’s age group, with higher rates imposed on younger employees to build retirement savings progressively. Here’s a simple breakdown of the contribution rates for employees up to 55 years old:

Employee’s share: 20% of gross salary
Employer’s share: 17% of gross salary
Total: 37% of gross salary

Additional Wage Components

Beyond the basic salary and CPF contributions, additional wage components play a significant role in the overall salary structure:

  • Overtime Pay: Employees who work beyond their regular working hours are entitled to overtime pay, at least 1.5 times the hourly basic pay rate.
  • Commissions: Sales roles often include commissions contingent on the employee’s performance and business revenue generated.
  • Other Allowances: These might include transport, food, or shift allowances meant to cover specific expenses incurred by the employee.
  • One-Twelfth of Annual Bonuses: Bonuses are often disbursed as an additional reward for performance. For the sake of contributions to CPF and tax declarations, bonuses are typically averaged out as one-twelfth of the annual amount to calculate monthly earnings.

These additional components can vary significantly between industries, companies, and even individual roles, reflecting Singapore’s diverse economic landscape.

Industry and Occupation Analysis

Singapore’s salary landscape reflects evolving industry trends and the growing demand for specialized professionals. This section provides an in-depth look at the lucrative sectors and the most sought-after job roles.

Top Paying Industries

Finance: Traditionally, the finance industry commands one of the highest salary scales, with roles such as investment bankers and fund managers seeing significant compensation.

Information Technology (IT): As digital transformation progresses, the demand for IT professionals, especially software engineers and cybersecurity experts, surges, pushing the salary spectrum.

Demand for Professions

Analysts in Business and Finance: There is a rising need for data analysts and business analysts as data-driven decision-making becomes crucial in the business and finance sectors.

Sales and Marketing: Professionals with robust sales and digital marketing expertise are critical for business growth, leading to competitive salaries to attract and retain talent.

Project Management: Across various industries, project managers with a track record of delivering successful projects are in high demand and command handsome salaries because of their ability to drive business objectives.

The compensations for these roles reflect the incumbent’s expertise and the broader economic health and strategic priorities of Singapore’s marketplace.

Economic Factors Affecting Salaries

In Singapore, salaries are influenced by various economic factors, ranging from the cost of living to business sector trends. Understanding these factors helps accurately gauge compensation levels relative to financial demands and market dynamics.

Cost of Living Adjustments

The cost of living in Singapore is a critical economic factor determining salary adjustments. As one of the most expensive cities in the world, housing, food, transportation, and healthcare require higher wages. Employers often consider these expenses when setting salaries to ensure that employees maintain an adequate standard of living. Adjustments are made periodically to reflect the ongoing price rise, maintaining a balance between earnings and expenses.

Financial and Business Trends

Financial and business trends in Singapore significantly impact salary structures across various industries. For example, professionals in the finance sector may command average salaries of around $8,190 due to the industry’s robust performance and high-return prospects. Changes in the economic climate, such as shifts in public administration and education sectors, can also drive salary figures to $6,962, mirroring the industry’s stability and growth trajectory.

Salary levels in Singapore correlate with an individual’s experience level and education level, with higher qualifications and extensive experience often leading to increased earnings. However, there is no minimum wage in Singapore; wages are typically determined by market salary rates, which are influenced by household income trends and financial planning considerations. Over time, an upward salary trajectory is expected as professionals advance in their careers and industries evolve.

At RemotePad, Lech draws on his professional experience to write about employment taxes and payroll (both remote, and in-office). Lech holds a Bachelors’ degree from the University of Kent, a Master of Arts (MA) from Kings College London, and professional payroll and tax qualifications. He has 20 years experience advising on all manner of tax and business planning matters.