Question

Dear HR Professionals,

I understand that the average annual increment in Singapore for 2019 is around 3-5%. If the annual increment is 3% for those who earn between $2,500 to-$3,000 will be less than $100, will this amount be too little to meet the inflation rate?

Jasmine

Reply 1

To help the lower income employee, a common approach is to use a combination of %+dollar quantum, for example, 3% + $60. For an employee drawing $3000, this translates into 5%. For an employee drawing $10k, this will be 3.6%.

AL

Reply 2

The projected inflation rate for

2018 - 1.07%

2019 - 1.37%

So, for 3% increment should be fine.

Dan