Channel NewsAsia
Updated: 03/10/2014 16:19 | By Channel NewsAsia

Salary increments, bonuses for 2014 expected to remain competitive:

Salary increments, bonuses for 2014 expected to remain competitive:

Salary increments, bonuses for 2014 expected to remain competitive:

SINGAPORE: A survey by recruitment company has found that 94 per cent of employers in Singapore plan to give up to two months of bonuses.

14 per cent of 125 employers surveyed in January this year said they will pay out two months of bonuses, and 5 per cent said they will pay three months of bonuses.

The average bonus is expected to be one month.

This excludes the annual wage supplement, or what is commonly known as the 13th month salary.

62 per cent agreed that bonus and increment is the most effective employee retention tool.

Amid the increasingly tight labour market, 88 per cent also said they intend to increase or match the increment and bonus payout in 2013.

On salary increments, the survey also showed that 22 per cent of employers said they intended to give a higher increment in 2014, citing staff retention as a key reason.

18 per cent planned to give salary increments of above 7 per cent.

The main beneficiaries of these increments are managers as employers indicated that they are allocating the biggest slice of the pie to this group.

The average salary increment is likely to be 4.5 per cent.

The survey showed that over 80 per cent of the 850 Singaporean employees surveyed said they had high expectations for their increment and bonus payout this year.

They felt that they deserved to be paid more in return for their contributions to the company.

60 per cent mentioned that their work performance had met their company's expectations.

The strong job market is also having an impact on staff loyalty.

45 per cent, compared with last year's 26 per cent, indicated that they will still explore better career opportunities outside of their company, despite receiving bonuses and increments that meet their expectations.

The survey found that the decision for a job change is largely driven by factors such as better remuneration packages, staff benefits, work-life balance and career advancements.

- CNA/gn

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