A survey says many companies have moderated wage expectations

Many companies have moderated their expectations on wage increases, bonuses and recruitment plans compared to three months ago. 

Due to increased uncertainty with an impending economic slowdown, slightly more companies have frozen wages. 

The companies that have retrenched or are planning to retrench staff have also increased slightly. 

This according to latest survey results conducted by the Singapore Human Resources Institute and Remuneration Data Specialists. 

The basic wage increase in 2012 will average 4 percent for the full year, slightly lower than the 4.1 percent reported 3 months ago. 

Engineering and related sectors are expected to pay the highest increase at 5 percent. 

Electronics components trading will pay the lowest at 1.6 percent. 

For next year, the basic wage increase is expected to remain at 4 percent. 

Variable bonuses (excluding AWS) are expected to average 1.6 to 2 months this year, unchanged from 3 months ago. 

Next year, these are expected to drop slightly to 1.5 to 1.8 months, slightly lower than that projected earlier. 

For 2013, the total wage increase is expected to be 2.6 percent and with inflation expected to be around 3.5 to 4.5 percent, real wages are likely to drop by 0.9 to 1.9 percent. 

On recruitment, 78 percent of companies hired or planned to hire staff this year lower than the 83 percent reported 3 months ago, and for 2013, only 56 percent are expected to hire. 

This year, 12 percent of companies retrenched or plan to retrench staff more than the 8 percent of 3 months ago. 

For 2013, due to economic uncertainty, most companies are not able to make any projection on retrenchment. 

Some 140 companies took part in the survey in September.