Change in Salary with Years of Experience
Experience and the compensation are directly proportionate to each other. It is believed that the more experience, the higher the compensation. Studies have proved that professionals with more than five years experience make 36% more than those with less than five years of experience. Organizations are more likely to give significant and frequent pay raises in the booming stage. There are exceptions, but the financial status of any corporation is inextricably linked to the economic situation of the country or region. However, the values are subject to change.
Across all businesses and specialties, individuals with two to five years of experience earn 32% more than freshers and juniors.
Following are the indicative figures of yearly salary increments according to a survey done by a salary portal:
- Junior Level- 3% – 5%
- Mid-Career- 6% – 9%
- Senior Level- 10% – 15%
- Top Management- 15% – 20%
Average Annual Salary Increment Percentage in Singapore
The terminology ‘Average Salary Increment’ typically means the change in salary over 12 months. But because salaries are not always reviewed at the end of a year, knowing the frequency and rate of the increase is more practical.
In a calendar year (12 months), the annual wage increase can be easily calculated: Annual Salary Increase = Increase Rate x 12 ÷ Increase Frequency
The average salary increase of employees worldwide is 3%, calculated at an interval of 16 months. It is 9% every 15 months in Singapore, which is relatively high compared to other nations.
According to a survey conducted by Salary Explorer, the following is the incremental percentage that was observed in particular sectors:
- Banking 7%
- Energy 5%
- Information Technology 3%
- Healthcare 1%
- Travel 8%
- Construction 6%
- Education 4%
Bonus and Incentive Rates in Singapore
In Singapore, 44% of polled employees stated that they had received no bonuses or incentives in 2021, while 56% claimed they had gotten at least one monetary reward.
According to those who had received it, the bonus ranged from 3% to 6% of a person’s annual pay.
Types of bonuses awarded:
Individual Performance-based Bonuses-
One of the most common types of bonuses in which the employee is rewarded for excellent performance.
Bonus for company performance-
Some businesses like to share their extra revenues and profits with their employees in bonuses given to everyone. The bonus amount will most likely range from person to person, depending on their position within the company.
Apart from that, bonuses are also awarded for accomplishing a specific goal or milestone. Bonuses for holidays and year-end are frequently presented without explanation and resemble an appreciation token.
Comparison of Bonuses by Seniority:
Bonus rates and frequency are naturally higher for top management and senior staff than junior employees. Due to the inherent duties of being higher in the hierarchy, this is relatively foreseeable. Bonuses for top management can easily be doubled or tripled compared to lower-level employees.
Conclusion
In conclusion, the average salary in Singapore for Indian expatriates in 2024 reflects the city-state's robust economy and its status as a global business hub. While salaries vary by industry, experience, and qualifications, Indian professionals often find competitive compensation in sectors like finance, technology, and engineering. Singapore's meritocratic system ensures that talent and hard work are key determinants of remuneration, offering Indian expats fair opportunities to thrive in their respective fields. However, it's important to consider the high cost of living when evaluating salary packages. Overall, for Indian professionals in Singapore, the blend of a strong economy, multicultural work environment, and high living standards continues to make Singapore an attractive destination for career growth and financial stability in 2024.