Average Salary in Singapore by Age, Experience and Education Level
Workclass.co, Average Salary in Singapore by Age - Passing through the checkpoints of the working world can be a challenging time, especially if you're new to it. Each stage comes with its own share of challenges, but when you consider Singapore's constant job market changes and growth, minor or significant, it can be quite interesting to see how much you could be earning when you reach certain ages.
Singapore has a population of 269,925 millionaires despite being such a small country. And Singaporeans are known to be among the highest earners in the world. But not all of them earn equally; some have a higher income than others. Even there is a difference between the salaries of related workers. Salaries in Singapore follow a typical pattern.
The median monthly income of Singaporeans increases sharply with increasing age and qualifications. Degree holders who are doing higher paying job earn more than the people who work on the basic wages. Those who are in their thirties earn more than those in their twenties, who earn more than teenagers. This trend in Singapore's average salary by age and qualification seems to be an unspoken truth.
In this article, we will talk about the average monthly salaries in Singapore. We further categorized it by age, education, occupation, gender, and industry.
So, if you want to check your income against other related workers and see whether you are earning a good salary, then keep reading!
In Singapore monthly salary depends on experience level, occupation, Job title, and education level.
In addition, it varies dramatically by sectors, such as IT, banking, and healthcare, and work type (self employed persons, part-time, or full-time).
A Singaporean employee's average gross monthly income is S$8,450 (considering all these points). Gross monthly income refers to a person's basic monthly salary before deductions for employee CPF contributions, personal income taxes, overtime pay, commissions, and annual bonuses.
Furthermore, a Singaporean employee makes an hourly earnings average of 49 SGD. It is approximately 36 USD.
Here are a few other characteristics of average Singaporean salaries:Median Salary Overview The calculation of Singapore's median salary involves dividing the workforce into two equal groups based on their salary. While a majority of employees earn salaries above the median, nearly half earn salaries below this point. An Overview of Median Monthly Salary Singapore boasts an average median monthly salary, inclusive of CPF employer contributions, amounting to $4,680 ($56,160 per year).
When excluding employer CPF contributions, the average median monthly salary stands at $4,000 (equivalent to $48,000 annually).
Over the period since 2011, Singapore has witnessed a growth of 44.0% in median salary income, representing an average annual increase of 3.7%.
Salary Range: Maximum and Minimum The salary range in Singapore spans from an average of $2,140 to $37,700 per month. These figures represent the maximum average salaries or median gross monthly income. It is worth noting that actual salaries may significantly surpass these amounts.
Increment Percentage for Average Annual Salaries According to Salary Explorer reports, Singapore expects an average salary increase of 9% every 15 months. In comparison, other similar countries typically witness an average salary increment of 3% every 16 months.
The Absence of a Minimum Wage in SingaporeSingapore stands out as one of the nations without a mandated minimum wage. The absence of legislation regarding minimum wage translates to the absence of a legal minimum pay requirement in the country. Nevertheless, the Ministry of Manpower (MOM) in Singapore has recently undertaken initiatives to implement a new wage framework designed to safeguard individuals with lower median incomes. This framework particularly benefits occupations such as security guards, machine operators, sales workers, craftsmen, clerical support workers, and related roles. Under this new model, security guards will receive a minimum wage of S$1,000, while cleaners will be entitled to a minimum wage of S$1,100.
In the following section, we will compare the median monthly salary in Singapore on the basis of age group, experience, education, and occupation:
Average Salary In Singapore Based On Age Group
Based on Manpower research, Singapore citizens with full-time jobs have an average gross monthly income of $4,000 (excluding employer CPF). Employee CPF is included in this calculation and is what most Singaporeans view as their gross monthly wage.
Source: Dollars and sense
MOM's data begins at 15 years of age.
However, this only includes a full-time job, which is very rare among this age group.
As Singaporeans age, the median salary increases from S$2,329 in their early twenties to S$5,958 in their early 40s.
In the prime working years, which means the 20-24 & 25-29 age groups, the average salary rises by S$1,171, followed by the 30-34 age groups, where the increase is S$1,000.
The most significant jump would be S$1,329 for those starting work between 15-19 years of age.
The highest pay is between 40-44 age, and after 49, the salary drops significantly. It is interesting to note that, although the retirement age for full-time employment is 67, the median wages start tapering off at the age of 45.
Average Salary Depending On The Age Group For Different Occupations Varies
PMETs with higher-skilled jobs like managers & administrators, professionals, and associate professionals & technicians are more likely to earn more money than the average wages.
Clerical support workers are the most common occupation among 15-19-year-olds with a median salary of $800.
Professionals, associate professionals, and technicians earn more than the average salary for those between the ages of 20 and 24. From age 25 and up, managers and administrators earn the most.
At 60 and over, administrators and managers see their earnings drop significantly (over $1,000), while other professionals maintain their earnings near the median salary.
Moreover, a policy change that requires all Singaporean workers and local employees to receive the local standard wage (which is $1,400) has resulted in an increase in the average wage of cleaners, laborers, and other occupations (also individuals nearing retirement age and over 60).
Average Salary Depending On The Age Group For Different Qualifications Varies
Having an educational background along with professional qualifications increases your earnings potential. Generally, the more education you have, the higher your salary will be. Perhaps this explains why Singaporean parents insist on their children achieving academic excellence.
Degree holders are more likely to earn higher wages near their retirement years compared to the average person. The same is true if diploma holders choose to continue working full time after retirement, as they are likely to continue earning above-average income based on their level of qualification.
During your 40s, the average salary starts to peak.
Median gross monthly income reaches its peak in the 40s across all age groups, professions, and education levels. Academic qualifications and professional occupations typically peak in the late 40s, whereas other professions and qualifications peak in the early 40s.
The concept of FIRE may be the best motivation for those of us who strive to achieve financial independence before the age of 45, build a savings account and stop working after the age of 45. It might be comforting to know that in the majority of non-PMET occupations, wages do not drop much after 60.
The gender pay gap is a frequently discussed topic. Even though Singapore offers many opportunities for both men and women, there is still a gender pay gap. The reasons are debatable - whether it makes sense for there to be one or not - but it does exist.
When comparing salary levels, males earning seem to be more than the females. The statement is broad and does not take much else into account.
Women and men tend to have similar salaries - they rise until about 44 years of age and then decline.
However, stats show that female employees earn more money at a younger age compared to male employees. Women earn more or the same amount as men up until they are 29 years old. However, at a mid-way point, male earnings start to rise at around 30.
Knowing Singapore's employment practices is essential whether you want to outsource to the country or understand the country's employment landscape.
The following are provisions for employees in Singapore:
1. Working hours
A worker may not exceed 44 hours a week under the Employment Act. This provision should be spelled out in the service agreement.
Overtime is allowed in Singapore, but employers cannot allow their employees to work more than 72 hours per month. In addition to the basic hourly rate, employers should pay their employees at least 1.5 times the basic hourly rate for overtime work.
3. Work Week
There is usually a 5-day working week at most companies, and weekend workdays are generally available.
4. Paid Leaves
Singapore employees have the right to 7-14 paid vacation days.
5. Other leaves
The company's employees are entitled to sick leave, paid holidays, and yearly leave as well as emergency leaves for the death of a family member, marriage leave or parental vacation.
6. CPF Contribution
When an employee earns more than 50 Singapore dollars per month, their employer sanctions their CPF contribution. Contributions to the CPF provide health and retirement benefits to working Singaporeans. Employer contributions to CPF are only tax-deductible for Singaporeans and permanent residents of other countries.
Singapore has a relatively high average income and a low personal income tax rate.
Also, Singapore's cost of living is higher than neighboring countries such as the Philippines, Cambodia, and Indonesia.
To give you a detailed picture of Singapore's cost of living, we will take a look at the following:
People in Singapore spend the most on housing. Singapore is a popular rental destination for expatriates (citizens who work or live abroad- especially south Korean workers). For a shared apartment, the average monthly rate is S$500 for a one-bedroom apartment, S$2,018, and for a three-bedroom apartment, S$3,885.
An apartment with modern amenities, however, costs up to S$10,000 per month.
In Singapore, purchasing property is a viable option for finding housing, but it is not particularly affordable. Real estate in Singapore is one of the most expensive worldwide.
A car in Singapore costs 2.5 times more than one in Malaysia.
Monthly car payments typically range from s$1,000 to S$2,000. Loan payments, fuel prices, insurance charges, and maintenance fees are included in the monthly payment.
However, Singapore's public transport system is excellent and very affordable.
Taxi and bus are available as full time national service, which can cost anywhere from S$100 to 120 per month.
Due to Singapore's reliance on imported foods and lack of grain production, groceries are quite expensive as well in Singapore.
As a result, residents can expect to pay about 200 SGD for groceries if they buy locally and prepare their food at home.
Depending on where and how often you dine out or which food services you choose, the monthly cost may vary.
An average meal in a cheap restaurant, however, will cost you around S$8.85.
Dining out will cost you an average of S$300-450 per month.
4. Wrapping Up
Don't be discouraged if you earn less than the median salary in Singapore, as the range within each group can vary widely depending on your profession.
The most important thing is to keep improving yourself so you can be more employable.
The following are some ways you can earn close to the average Singaporean salary:
Take advantage of free course credits to upgrade your knowledge and skills.
Consider switching careers at mid-career to get more average income.
Take advantage of investment opportunities and do proper financial planning.
Know what your goals are and how you intend to reach them
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