SINGAPORE - Resident workers in Singapore saw their spending power improve in 2025 as wages rose while inflation eased, according to the Ministry of Manpower (MOM).Nominal wages of full-time workers - including employer CPF contributions - rose 4.9 per cent in 2025, slower than the 5.6 per cent recorded in 2024.But after adjusting for inflation, real wages grew by 4 per cent, up from 3.2 per cent the year before. This means workers generally had higher purchasing power, according to a MOM report on wage practices released on May 28.Singapore’s overall inflation averaged 0.9 per cent in 2025, a big drop from 2.4 per cent in 2024, according to official data.MOM polled some 6,236 firms in the private sector with at least 10 employees for this report. The findings reflect the wages of over 1 million employees.In 2025, 83.1 per cent of business establishments were profitable, up from 80.8 per cent in 2024.Firms reporting stable or improved profitability rose to 64.1 per cent, up from 62.7 per cent in 2024, suggesting a growing share of financially stable firms, the Ministry of Manpower (MOM) said.Meanwhile, the share of firms making losses fell to 16.9 per cent in 2025, from 19.2 per cent in 2024.Still, fewer companies raised salaries compared with the previous year.About 72.4 per cent of firms raised wages in 2025, down from 78.3 per cent in 2024. More employers also chose to keep wages unchanged.MOM said the moderation in inflation may have reduced the pressure on firms to raise salaries.Among companies that raised salaries, the average jump was 5.8 per cent. Retaining workers was the main reason cited for the pay hikes.Only 3.1 per cent of the firms surveyed cut wages in 2025, down slightly from 3.2 per cent in 2024.In 2025, rank-and-file workers saw wage growth of 4.8 per cent, while junior management and senior management employees saw growth of 5.1 per cent and 4.9 per cent respectively.This was lower than in 2024, when wage growth for rank-and-file workers came in at 5.8 per cent, while junior and senior management employees saw 5.6 per cent and 5.1 per cent growth.Wage growth remained positive across all sectors in 2025.Administrative and support services posted the highest wage growth at 7.5 per cent, though this was lower than the 8.7 per cent growth recorded in 2024. MOM said lower-wage workers in the sector continued to be supported under the Progressive Wage Model and Local Qualifying Salary requirements.Accommodation recorded the largest moderation in wage growth, easing from 5.5 per cent in 2024 to 3.9 per cent in 2025 as labour demand stabilised following the hiring surge during the post-pandemic recovery period from 2022 and 2023.While most sectors recorded slower wage growth in 2025, insurance services and wholesale trade were the two sectors that bucked the trend. In particular, the insurance services sector saw wage growth rise from 4.9 per cent in 2024 to 6.6 per cent in 2025.MOM said the stronger wage growth in this sector was driven by the need to retain employees.“Looking ahead, wage growth is expected to remain positive but moderated amid a more uncertain global environment and inflation risks. Firms are likely to be measured in wage increases,” MOM said.