The high cost of living in Singapore will make you wonder if you are earning enough. With expensive flats, food and transportation costs, and even recreation, it is wise to know if you are earning enough to thrive. Or if it may be the time to look for a higher-paying job.
We know that a good salary is determined by factors like age and chosen industry. If you are young and are in the early days of your career, it is helpful to know how much the average should be according to these factors. Knowing this will help you better determine your goals and manage your funds accordingly.
Do you want to know if your salary fairs well with your peers or if your chosen industry will earn you better? Read on as we cover relevant data on the average salary in Singapore according to age and industry.
Why is a Good Salary Important?
In today’s economic climate, where inflation is high and the costs of living are soaring, one needs a good salary. Having a job that pays well is essential to sustain the basic costs of living. While having an above-average salary is better as it allows you to afford more than just the basic needs.
With that, everyone is looking not just for a good salary. Instead, many are looking for a salary that can compensate for their worth. One that pays them for what they bring to the organization and allows them to have a good and comfortable life at the same time.
Giving good salaries are also important for companies as it improves productivity in employees and returns loyalty as well. Furthermore, the company will also save money by having low employee turnovers.
Mean Vs. Median Salary
Salary is one of the most critical factors in choosing a job or considering a job prospect. With this, you also have to know specific values like the mean and the median. Both values are representative of a salary’s central tendencies. However, these terms can be a bit confusing, so let’s try to simplify them.
What is Mean Salary?
The mean salary is the same thing as the average salary. To calculate this, you divide the sum of the salary data by the number of data points.
For example, there are five employees in a specific department, and we need to compute their average annual salaries.
Thus, you compute the average or mean from the data presented by dividing the sum of their annual salaries by 5.
What is the Median Salary?
The median, also known as the midpoint, is the middle value from a data series arranged from lowest to highest.
In terms of a certain job, the median salary is the middle point for all salaries in that category. In short, this midpoint divides the working population into two groups. Those in the upper half of the data will be less than the median. On the other hand, those in the lower half will be greater than the median.
Taking the same example:
The median here is that of employee 3’s salary, which is S$37,000. In terms of compensation, the median is a better indicator of typical salary as it is less affected by abnormally low or high values than that of the average.
What Is the Average Salary in Singapore?
In general, the average salary in Singapore depends on certain factors, which are age, industry, gender, and education. It can also vary on an employee’s experience level and whether it is a part-time or full-time job.
Singapore’s average monthly salary has risen to S$6,641 in early 2022. This amount is inclusive of the employer’s CPF contributions. On the other hand, the average monthly median income, still inclusive of the CPF employer contribution, is S$4,680. But with inflation and the rising cost of living in Singapore, is it enough?
Over the past 10 years, Singapore’s median income has increased by 44%. Still, there are many factors involved in determining a good salary. Below is some general information on how you can evaluate your salary further by age or industry.
Average Salary Per Age
You should know that as you age, your wages rise with it. This is because you learn new skills and gain better experience as you go further in your career. With this, age becomes one determining factor for salary increase.
In general, the median monthly income of full-time workers, according to the Ministry of Manpower (MOM), is S$4,0000, excluding employers’ CPF. And as mentioned above, S$4,680 if employers’ CPF is included.
For consistency, we will be using salary data that is inclusive of employers’ CPF contributions for the different age groups.
|Age||Median Gross Monthly Income (including employers CPF) for the year 2021|
|15 to 19||S$1,170|
|20 to 24||S$2,691|
|25 to 29||S$4,095|
|30 to 34||S$5,222|
|35 to 39||S$6,102|
|40 to 44||S$6,825|
|45 to 49||S$5,958|
|50 to 54||S$5,070|
|50 to 59||S$3,729|
|60 and above||S$2,543|
As you can see, the median monthly salary increases as you age and peaks on the 40 to 44 age group. However, it decreases again as you age and declines more as you reach the retirement years.
As an insight, you earn much during your prime years. These are the best years to save to achieve your financial goals earlier – retirement fund included.
Average Salary Per Industry
Knowing the appropriate salary for your industry is also crucial as it can help you choose a professional path or further your education. It will also empower you to negotiate salaries better with employers in the future. In this regard, a job with an above-average salary can be considered one.
Check out the average salary across different industries in the table below:
|Industry / Occupation||Gross Monthly Salary (Employer CPF contributions included)|
|Managers and Executives||S$9,620|
|Clerical / Clerical Support||S$3,042|
|Craftsmen and Related Trades||S$2,819|
|Plant and Machine Operators||S$2,155|
|Cleaners and Related Trades||S$1,638|
|Financial and Insurance||S$7,069|
|Public Administration and Education||S$6,338|
|Information and Communication||S$6,092|
Under the PMET category, you will see that managers and executive are those that earn most in terms of gross monthly income. Also, you are more like to earn an above-average salary if your industry belongs to this category. While in the non-PMET category, clerical support workers are paid the most.
Salary Increase by Industries
To compensate further, employers should also offer salary increment packages to their workers. In Singapore, one is likely to get a salary increase of approximately 7% over a 12-month period. Still, this increase varies according to industry and experience level.
Newest surveys show that salary increases across industries should be expected, given the high inflation rate projections.
|Industry||Projected Increase for 2022|
|Banking and Finance||3.6%|
Industries with the highest expected increase are the high tech, life sciences, and aerospace category.
Highest Paying Jobs in Singapore
Salaries in Singapore are pretty lucrative in some industries. It tops 17th place in the list of countries with the highest salaries, according to one Paylabs survey. If you are looking for a job that pays more than what the average employee is earning, then here are some well-paying industries to consider:
Some of the top-paying jobs, according to a survey released by MOM last 2020, are the following:
- Legal Counsel
- Securities and Finance Brokers
- Chief Information/Technology/Security Officer
- Audit Manager
- Fund/Portfolio Manager
- Medical Practitioner
- Chief Operating Officer
Note, though, that the jobs mentioned above require a high level of education and experience in the field. They may be good career choices, yet not everyone is a good fit for these roles. Still, Singapore’s career market is vast, despite an existing gender pay gap, and there are other high-paying jobs that you could consider.
Other jobs that offer competitive salaries in Singapore are:
- Game designers
- Food Technologists
- Occupational Safety and Health Officers
Median Salary Peaks In Your 40s
Median Salary in Singapore peaks in the 40s, and it continues to grow for another decade. This peak is an excellent time to build wealth and practice proper financial planning. A good rule of thumb is that one should always spend less than what they earn. This rule applies even if you are earning a good income.
How to Make the Most of Your Peak Earning Years?
As you earn more money, your lifestyle may also change. There is nothing wrong with splurging on some luxuries and vacations once in a while. But, along with earning more, it is also best to invest and save for your retirement fund.
Go For Home Ownership
Owning a home is a significant financial commitment, yet it is still one of the best investments you can get. Real estate enthusiasts will also say that owning a piece of real estate is owning a business and can provide an endless source of cash flow should you decide to sell or rent it out in the future.
Choose Good Investments
Mutual funds, index funds, and exchange-traded funds (ETFs) are generally excellent investments. If you are new to these types of investments, consult a financial advisor before trying these out.
What is a decent salary in Singapore
A good salary factors in heavily when choosing a career. While Singapore offers lucrative salaries to some industries, others may have to work harder to further their careers or learn new skills. And with Singapore’s free market economy, there’s always an opportunity for you to look for a well-paying job that best suits you.
- There is a direct link between age and salary, and the highest earning potential peaks at 40.
- Industries that pay better also require higher education and long years of experience and training.
- If you are looking for a better-paying job, choose one in a thriving industry.
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