SHRI in conjunction with RDS surveyed 128 companies in June 2011 to find out about their wage increase, bonus, and recruitment plans. 

Summary of Key Findings

·          Due to expectation of a moderated economic growth in the second half of 2011, the business outlook for the next six months dipped slightly. As a result, companies are also somewhat cautious on wage increases, bonuses as well as recruitment.

·          The basic wage increase this year will average around 4.1%, higher than the 3.6% in 2010 but not substantially higher as the strong 2010 growth would have led some to expect.

·          Variable bonuses (excluding AWS) will average 2.2 months, slightly lower than the 2.3 months in 2010. The total wage increase will be only 3.4% which will result in a small decrease in real wages of around 0.1 to 0.6% as the consumer price index inflation for the whole of 2011 is expected to come in at the upper half of 3 to 4%.

·          For the first half of 2011(similar to last year), 77% of companies hired staff but for the second half, less companies (59%) expect to hire and the numbers to be recruited per company is also expected to be lower than in the first half of the year.

·          7% of the companies retrenched or expect to retrench staff in 2011, slightly less than the 8% last year.

·          86% of companies experienced staff turnover in 2011, same as in 2010. The turnover rate is expected to average 7 to 8%.

·          Entry -level salaries increased significantly across the board over the last six months. The increases ranged from 1.4% to 9.3%

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