Employers holding pay hikes steady at 3% to 6%, say HR firms
Employers hold pay hikes steady at 3% to 6% for 2026, say HR firms
Key takeaways (fast read)
- HR surveys suggest average 2026 increments remain around 3%–6%, with many firms staying cautious amid economic uncertainty.
- Some employers are shifting towards smaller increments and more moderate bonuses.
- Demand-led roles (e.g. AI, cybersecurity, certain life sciences, and ESG/compliance) may see stronger pay pressure than the broader market.
- Job switchers can still command higher jumps than stayers, especially in niche skill areas.
What the HR surveys are signalling
The Straits Times report (15 Dec 2025) says multiple HR firms’ surveys broadly point to employers keeping increment budgets similar to 2025, with many still cautious due to uncertainty. Some data points suggest a growing share of companies leaning towards increments below 3%, while fewer plan larger jumps of 5%+. It also notes an average salary budget figure of around 4%+ cited by some consulting/recruitment firms, with the overall market commonly landing within the 3%–6% band.
Industry & role highlights mentioned
The article highlights that certain sectors/roles may see relatively stronger salary movement driven by demand for specialised skills — including life sciences/medical devices, tech roles like AI/cybersecurity/cloud, and ESG/compliance-related capabilities in financial services.
Bonuses: signs of moderation
Bonuses appear to be moderating slightly in some survey findings, with fewer employers planning larger bonus payouts and more clustering around “about one month” ranges. The report also notes differences by sector, where some industries are more likely to award higher bonuses than others.
Job switching: still higher upside (but more cautious mood)
The Straits Times piece notes job switchers can still see higher increments than those who stay, with potentially larger jumps in niche skill areas. It also references “job-hugging” behaviour — some workers holding on to roles amid uncertainty — even if longer-term mobility preferences remain.
TopBroker insights (what this can mean for business & property decisions)
If wage growth stays controlled but skill premiums persist, many operators will focus on productivity per sqft and cost certainty. For industrial and commercial tenants, this often translates to:
- Lease strategy: prioritise spaces that reduce downtime (logistics flow, loading/unloading efficiency, reliable M&E, compliant usage).
- Location trade-offs: pay a bit more rent if it meaningfully improves hiring/retention or cuts operating friction.
- Capex planning: moderate bonus expectations may shift budgets to targeted retention (training, flexibility, variable incentives).
- For landlords: stable pay growth can support rent sustainability, but tenants will negotiate harder on fit-out, reinstatement, and downtime risk.
