What is The Average Salary in Singapore And Are You Earning Enough?

With over 70% of PMETs in Singapore reportedly planning to change jobs in 2023, are you one of them? Even if you're not, knowing the average salary range in your industry can be helpful when you're deciding on a job offer or negotiating your increment.

For some, the pursuit of work and a meaningful career can go hand in hand. For others, work is simply an exchange of time and labour for a stable salary.

Knowing the median salary gives you a glimpse into your own standing relative to others in the workforce and can be very useful when you’re negotiating your salary or thinking of taking your career elsewhere. 

If your income is higher than the median income, good on you! You’re making more money than 50% of the workforce. The reverse is true, too, though don’t be too hard on yourself if you find yourself on the less desirable side of the distribution.  

Table of contents

• Median salary in Singapore 
• Average salary in Singapore 
• Median salary in Singapore by age 
• What is gross salary
• Salary guide by industry
• FAQs

What’s the median salary in Singapore? 

According to data from the Ministry of Manpower (MOM), the median monthly salary from full-time work in Singapore is S$5,197 in 2023, including CPF contributions from employers. 

Compared to 2022’s median monthly salary from full-time work at S$5,070, this represents an increase of 2.47%. 

It’s also interesting to note that the nominal and real annualised change in median gross monthly income from the year 2013 to 2023 is 3.4% p.a. and 2.0% p.a., respectively. Meanwhile, the nominal and real cumulative change from 2013 to 2023 are 40.3% and 21.6%, respectively. 

The difference between real income and nominal income is that real income is the amount of money an individual or entity makes after adjusting for inflation, while nominal income does not.

In other words, 

Without accounting for CPF contributions from employees, the median monthly salary from full-time work in Singapore in 2012 and 2022 is S$3,480 and S$5,070 respectively.

What’s the average salary in Singapore?

As of Q4 2023, the average salary in Singapore stands at S$6,792 per month, including CPF contributions from employers. 

Wages are benchmarked using average monthly income and income from employment is a key indicator of economic well-being. 

Median salary in Singapore by age 

It is fair that as we grow in age and experience, our wages rise. However, the wage increments don't go on infinitely. 

In fact, it holds true only up to a certain point — around the 45-year-old mark — before our wages start tapering off in our golden years. This is corroborated by the data we’ve gathered below for your easy reference. 

Source: Labour Force in Singapore

Of course, many factors go into the mix when it comes to one’s salary. Amidst the rapidly changing times that we work and live in, it is always a good idea to prioritise upskilling to stay relevant. After all, learning never really stops.

What is gross salary?

According to the Ministry of Manpower Singapore, the gross salary is the monthly wages or salaries before deduction of employee CPF contributions and personal income tax.

It comprises basic wages, overtime pay, commissions, tips, other allowances and one-twelfth of annual bonuses. The breakdown of your gross salary or nett salary is reflected in your payslip.

What is gross monthly income then? It simply refers to your total income from employment. You’ve also probably come across the term “minimum wage”. In Singapore, certain sectors have been included in the Progressive Wage Model (PWM), which was introduced in 2012 by NTUC to improve income inequality.

In the retail sector, about 19,000 lower-wage full-time workers will receive pay increments of 8.4% to 8.5% annually for three years from 1 Sept 2022 to 31 Aug 2025.

The government also implemented the Local Qualifying Salary, which stipulates that firms which hire full-time local workers must pay them at least S$1,400. This policy benefits around 159,000 lower wage workers who are not in sectors covered by the PWM.

See also: So You Want to Go Into Teaching – Here’s What You Should Expect

Salary guide by industry

With all this talk on salaries, you may be interested to know which are the highest-paying jobs in Singapore. Let’s start with the top industries:

• Accounting and Finance 
• Compliance 
• Banking and Financial Services 
• HR
• IT
• Sales and Marketing
• Project and Change Management
• Supply Chain and Procurement

Accounting & Finance

• In this sector, qualifications such as CFA, CPA, CMA, MBA are sought after 
• Possible career tracks include mergers and acquisitions, business valuation, internal audit, management accounting, and enterprise risk management 
• In-demand skills include assurance, financial and transaction management, digital and data management

Commercial Businesses

Compliance

• The role of a compliance officer is to oversee the conduct of compliance and regulatory risk assessments
• Key skills required for a career in compliance are budgeting, information systems risk management, risk and compliance reporting

Banking and Financial Services

• As a fintech hub, Singapore is well-placed to spearhead industry growth through setting up and supporting the financial infrastructure 
• As part of the Financial Services Industry Transformation Map 2025, the government is focusing on creating 3000-4000 jobs in the sector per year 
• Key goals include shaping the future of financial networks and fostering a skilled and adaptable workforce

Banking Operations

Investment Banking - M&A / ECM / DCM

Commercial Banking

Private Equity

Retail Banking / Premier Banking 

Human Resources (HR)

• This sector is hugely rewarding for those who thrive working with people
• Market knowledge on how to fill specific talent gaps is key 
• In terms of specialisation, go wide instead of narrow

Information Technology

• Growing prospects in this sector with global reliance on tech systems
• Cybersecurity, infrastructure, and pre-sales are the more lucrative roles  
• C++, Java are basic programming languages to know, with different roles requiring specific qualifications such as Microsoft Azure certification

Sales, Pre-Sales - Vendor, System Integrator, FinTech and Telecommunications

IT Product & Engineering in Technology, Telecommunications and Fintech

Software Engineering (Back End) 

Software Engineering (Full Stack) 

Mobile Engineering (Android / IOS)

Quality Assurance / Testing 

UI / UX 

Product Management 

Sales and Marketing

• Apart from good communication skills, product knowledge, and a people-oriented attitude, the ability to problem solve is crucial
• Digital marketing skills are essential 
• Industry knowledge for specific sectors such as technology and healthcare

Sales

Marketing - Banking & Financial Services

Marketing - Consumer Goods

Marketing - Digital Marketing

Marketing - Technology

Marketing - Pharmaceutical & Medical Devices

Project and Change Management

• Project management skills are highly sought after, with many project managers starting their careers at consulting firms
• PMP certification, Six Sigma, and MBA are common qualifications
• Seasoned project managers with more than 10 years' experience may progress into senior management positions

Supply Chain and Procurement

• SG is a global logistics hub, with the industry projecting a 8% growth rate during 2022 to 2027 
• As companies undergo transformation, the challenge is to continuously manoeuvre the latest technology. Any changes in the global shipping industry will also significantly affect Singapore. 
• Depending on your role, industry knowledge and specific skills such as project management will be useful

Frequently asked questions

1. What is the difference between gross and net salary in Singapore?

Gross salary is all earnings before any deductions are made, while net salary is after all deductions are made. Certain deductions include tax payments and CPF contributions.

2. What is the average salary increment in Singapore?

According to Mercer’s total remuneration survey for Singapore, the average pay raise in Singapore is expected to reach 4.2% in 2024, more than the 4.1% seen in 2023.

43. What are some benefits typically included in Singapore salaries?

Under the Singapore’s Employment Act, there are certain statutory benefits, also known as mandatory benefits, that employers have to provide to their employees. Some examples are paid annual leave, parental leave, worker’s compensation insurance and paid sick leave.

On top of that, there are additional benefits that companies may provide, though it is not obligatory by law. Some of these include performance bonuses, annual bonuses, sign-on bonuses, relocation packages, stock options, life insurance, flexible working, allowance, visa sponsorship, hardware, and career development opportunities.

See also: How To Negotiate Salary 2022 - “School Didn't Teach Me”

4. What taxes are applicable on salaries in Singapore?

All individuals earning or receiving income of S$20,000 or more in Singapore are subjected to personal tax return. If your income is lower than that, you don’t have to pay taxes. 

The personal tax rates will start from 0% to 24% for Singapore residents and 15% to 24% for non-residents from Year of Assessment 2024 onwards.    

For the full tax breakdown, you can refer to IRAS’ website here, or use their tax calculator.

6. How does the average salary in Singapore compare to other countries?

Singapore has the highest average salary in Asia. However, in comparison to other countries, Singapore ranks 11th in the global average wage at US$4,350 (S$5,896). 

7. How does education level impact salaries in Singapore?

It seems like educational qualifications do matter when it comes to wage levels for individuals going out to the workforce. The income level for university graduates is about 62% higher than the median salary of those with a diploma or A-level qualifications, revealed by an ongoing study by the National University of Singapore.

It is also double that of those with secondary and lower education, or graduates from institutions like the Institude of Technical Education (ITE) who earn an average wage of S$2,000 a month, as of 2022.

Read more:
School Didn’t Teach Me: Which is More Important — Education or Experience?
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Regardless of one’s highest education qualification attained, people earn less money when they are young, climb the salary scale and then experience a dip when they are older. This is just a fact of life here in Singapore. 

So, how much is a good salary in Singapore?

After looking at the salary charts above, you’ll probably find the question as helpful as asking “how much should I save?” or “how much do 30 year olds earn in Singapore?”

Apart from getting a promotion, one of the best times to increase your salary is when you have a job offer. On average, jobseekers reported a 20% increase in their salary when they change jobs, with some receiving as much as 38%.

Why are we shining the spotlight on the median salary trend? To encourage you to start thinking about retirement, of course! 

Like it or not, it is crucial that we plan ahead for retirement and commit to putting money aside regularly when we have the means to hustle and earn more money. The hard truth is that our earning ability dips when we’re old. 

You don’t want to wait till it’s too late before regrets become a thing you have to deal with on the daily with little to no extra money to spare. Case in point, retirees who didn’t plan for their retirement only have an average of S$1/day to spend on things they like! Have a look at these shocking statistics — they will push you to get started on your retirement planning.  

While you’re at it, start investing early to take advantage of the magic of compound interest! 

*Note: all figures mentioned exclude NSFs.  

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