The holiday season is here, and so are some interesting shifts in Singapore’s job market!
This December, we’re exploring rising job mismatches and what they mean for both workers and employers, diving into the latest labour market indicators that are affecting employment claims, and rounding off with year-end bonus updates for civil servants.
From more Singaporeans facing job mismatches, to insights from MOM reports, and the announcement of CPF wage ceiling adjustments, here’s everything you need to know as we wrap up 2025.
More Singapore Workers Facing Job Mismatches
A new Jobstreet report highlights a growing gap between what employees expect and what they actually experience at work.
Eight in 10 workers say their job doesn’t match what was promised, often spotting the mismatch within the first three months. Common causes include pay misalignment, unclear roles, and culture differences.
While salary remains important, employees are willing to compromise for fairness, work-life balance, and career growth, though flexibility has become an expected baseline.
Employers face challenges like skills shortages and budget limits, and many recognize the need for clearer communication, competitive pay, and alignment on roles and culture.
What it means for your company:
To attract and retain talent, companies should ensure:
- Role clarity
- Transparent communication
- Fair compensation
Understanding employees’ priorities and aligning expectations early can reduce turnover, strengthen engagement, and build trust in a competitive job market.
Click here to view the full article
Rising Employment Claims: What’s Driving the Increase?
According to MOM, employment claims have been rising since 2021,
Largely because more workers are experiencing involuntary job losses, such as dismissals, company closures, or retrenchments.
When these separations increase, salary and dismissal claims tend to rise as well.
The data shows that for every 100 additional cases of retrenchments or dismissals, employment claims grow by roughly 2%.
On the other hand, when the job market is healthier, with more vacancies and quicker re-entry into employment. the number of claims generally falls.
What this means for your company:
The rise in employment claims is mainly driven by labour market conditions (e.g., retrenchments, dismissals), not worsening employment standards.
Keep an eye on indicators such as:
- Retrenchment trends
- Job vacancy levels
- Unemployment rates
These indicators can act as early warning signs for potential disputes.
Proactive monitoring helps companies prevent salary or dismissal-related issues before they escalate.
Employment claims have increased mainly because of higher labour market turnover.
With more business closures, restructurings, and retrenchments, workers are moving between jobs more often, leading to more disputes and claims.
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Comparing Salary Claims with Labour Market Indicators
Analysis shows that salary claims rise when there are more involuntary job separations, such as dismissals, business closures, or retrenchments.
In fact, every increase of 100 such cases is linked to a 1.8%–2.4% rise in salary claims.
On the other hand, when the job market is strong, with more vacancies, lower unemployment, and better re-entry rates, salary claims tend to fall slightly.
This suggests that healthier hiring conditions help keep wage disputes under control.
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Comparing Dismissal Claims with Labour Market Indicators
Dismissal claims also rise when involuntary separations increase.
For every 100 additional dismissals, business closures, or retrenchments, dismissal claims go up by approximately 1.7%–2.4%, mirroring the pattern seen in salary claims.
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Key Takeaway for Employers
The rise in employment claims is mainly driven by labour market conditions, such as retrenchments and business closures, rather than poor employment practices.
By monitoring these trends, companies can identify potential risks early and take steps to prevent wage or dismissal disputes before they occur.
Click here to view the full article.
Increase in CPF Ordinary Wage ceiling from 1 January 2026
The CPF Ordinary Wage (OW) ceiling, which limits the portion of monthly wages subject to CPF contributions, will rise from $7,400 to $8,000 in 2026.
This is the final scheduled increase after gradual adjustments since September 2023.
Other CPF limits remain unchanged:
- Annual salary ceiling: $102,000 (total CPF contributions cap for the year)
- Additional Wage ceiling and CPF annual limit: unchanged at $102,000 – OW for the year and $37,740.
What this means for your company:
- Employers will contribute CPF on slightly higher monthly wages starting 2026.
- Payroll planning should account for the updated ceiling to ensure compliance.
- No changes to other CPF limits mean overall contribution planning remains largely the same.
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Increase in CPF Contribution Rates from 1 January 2026
From 1 January 2026, the CPF contribution rates for employees aged above 55 to 65 will be increased to strengthen their retirement adequacy.
The changes will apply to wages earned from 1 January 2026.
CPF Contribution Updates for 2026
Senior employees (aged 55–65):
- Any increase in CPF contributions will go fully into their Retirement Account (RA), up to the Full Retirement Sum (FRS), helping them save more for retirement.
- If the FRS is already met, contributions will go to the Ordinary Account (OA).
Employees earning $500–$750/month:
- Contribution rates will continue to phase in gradually.
First- and second-year Singapore Permanent Residents (SPRs):
- No changes to their graduated contribution rates.
What this means for your company:
- Payroll calculations for senior employees may see higher RA allocations.
- Employers should continue to apply phased-in contributions for lower-wage employees.
- No additional adjustments are needed for new SPR hires.
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Click here to view the full article.
Civil Servants to Receive 1.3-Month Year-End Bonus
The Public Service Division (PSD) has announced that all civil servants will receive a
1.3-month year-end bonus for 2025.
- Employees in grades equivalent to MX15 and MX16 and those in the operations support scheme will also get a one-time payment of $600.
- The non-pensionable annual allowance (13th-month bonus) will continue.
- With mid-year payments included, civil servants will receive a total of 1.7 months in full-year annual variable component (AVC), with junior grades receiving additional lump sums of up to $1,000.
The bonus reflects stronger-than-expected labour market conditions, stable employment, and Singapore’s upgraded GDP growth forecast of around 4% for 2025.
The government continues to follow a progressive approach in line with the National Wages Council recommendations.
What this means for your company:
- The government’s move signals a stable and improving labour market, which may influence pay and bonus expectations across other sectors.
- Companies can anticipate potential upward pressure on salary adjustments and bonuses, especially for private sector employees in roles comparable to civil servants.
- Employers may want to review total rewards strategies to remain competitive and retain talent in a strong labour market.
Recruitment Agency Singapore
Recruitment Agency Singapore
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