Key Highlights of Wage Trends and Employment Conditions in 2022

Understanding Wage Trends is crucial for HR practitioners to make informed decisions about compensation. Here are the key highlights from the recently released “Report on Wage Practices 2022” and “Conditions of Employment 2022” by Ministry of Manpower (MOM).

Also, it is important to create a conducive and supportive work environment.

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Wage Trends in 2022

The “Report on Wage Practices 2022” serves as a valuable resource for HR practitioners, equipping them with insights to navigate the evolving landscape of wage trends, skills development, and gender pay equity. Stay informed, make informed decisions, and continue to prioritize attracting, retaining, and supporting your talented workforce.

Trends in Wage Growth :

In 2022, the proportion of establishments providing wage increases increased to 72.2% from 60.0% in 2021, coinciding with a rise in the number of profitable firms.

• The proportion of establishments offering wage increases in 2022. It is slightly higher than the pre-pandemic level of 69.2% in 2019. Only 5.2%, reduced employee wages, while 22.6% maintained wages at the same level.
• Despite rising prices, nominal wage growth surpassed inflation. This results in a marginal real wage growth of 0.4% in 2022. However, the real wage growth was lower than the previous year (1.6%).

Wage Trends in Private Sector

• Private sector wage growth outpaced the public sector, with a growth rate of 2.8% in 2022 compared to 2.4% in the public sector. This disparity can be attributed to the robust economic recovery, resulting in increased labor demand.
• Consequently, HR practitioners in the private sector should adopt a proactive approach to attract and retain talent.

Outlook for 2023

• Wage growth is anticipated to continue in 2023, at a slower pace than in 2022. This emphasizes the need for HR practitioners to be prepared for negotiations aimed at securing higher wages for their employees.

Skills and Productivity:

• The report emphasizes the importance of skills and productivity in driving wage growth. Workers with higher levels of skills and productivity tend to earn higher wages as they are more valuable to employers and in higher demand. Therefore, HR practitioners should prioritize the development of employees’ skills and productivity.

Gender Pay Gap:

• The report indicates a narrowing gender pay gap in Singapore during 2022.
• The median monthly gross earnings of female full-time employees amounted to 91% of their male counterparts, compared to 89% in 2021. Factors contributing to this positive change include increased female workforce participation and growing demand for female workers in specific sectors. As HR practitioners, it is crucial to be mindful of gender pay equity when making compensation decisions.

Source: Report on Wage Practices 2022 (mom.gov.sg) 

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Highlights of Workplace Practices in 2022

The COVID-19 pandemic has reshaped work arrangements, leading to a rise in flexible work options and the implementation of supportive policies for employees. These changes have proven beneficial for both organizations and their workforce.

The ongoing embrace of FWAs, expanding non-statutory leave provisions, and the commitment to employee support schemes highlight the importance of creating a conducive and supportive work environment.

Flexible Work Arrangement:

• The COVID-19 pandemic has spurred a widespread adoption of flexible work arrangements (FWAs) by employers.
• The proportion of firms offering scheduled FWAs declined from 90.5% in 2021 to 71.4% in 2022 after safety measures were lifted. However, it remains significantly higher than the pre-pandemic rate of 52.7% in 2019.
• This trend of embracing FWAs is anticipated to persist. Only a small minority of firms (16.2%) indicating they are unlikely to provide FWAs in the upcoming year.
• Among firms that provided scheduled FWAs expressed these benefits below: 

Non-statutory Leave:

• Non-statutory leave (NSL) policies have become increasingly prevalent. 97.8% of firms offered at least one type of NSL to their employees.
• The provision of NSL has expanded across various categories. These include paid compassionate leave (89.3%), unpaid leave of 1 month or less (80.9%), and marriage leave (72.6%).
• While the percentage of firms offering paid family care and paid child sick leave with medical certificates was relatively lower, these categories have reached all-time highs.
• While the percentage of firms offering paid family care and paid child sick leave with medical certificates was relatively lower, these categories have reached all-time highs.

Wage Trends

Employee Support Schemes:

• In 2022, 44.5% of firms provided employee support schemes (ESS). Mental health support was the most commonly offered type.
• Larger firms with over 500 employees were more likely (77.6%) to provide ESS compared to smaller firms (41.8%).
• A significant majority of firms expressed their intention to continue providing ESS in the coming year. These schemes were viewed as beneficial by firms.

Wage Trends

Source: Conditions of Employment 2022 (mom.gov.sg) 

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