A Fresh Grad’s Guide to Starting Salaries in Singapore

This post was originally posted on Planner Bee.

Entering the workforce for the first time? It can be both an exciting and daunting experience for many fresh graduates. One of the most intimidating aspects of this student-to-working-adult transition is understanding the starting salary landscape in Singapore.

Even without substantial working experience, it is important for anyone to know what to expect in terms of salary as it can help you make informed decisions about job offers, manage your financial expectations, and plan for the future.

Here, we will be looking at and analysing the results from Graduate Employment Survey 2023 and Graduate Starting Salary 2023, checking out salary trends in Singapore, and providing tips for anyone fresh out of school to navigate the job market.

About the Graduate Employment Survey 2023 and Graduate Starting Salary 2023

For the Graduate Employment Survey 2023, 16,630 fresh and 1,145 follow-up graduates from NUS, NTU, SMU and SUSS were surveyed.

The survey seeks to understand the employment conditions of graduates about six months after their final examinations. It also looks into the graduates’ gross median salary according to their cohort cluster. The monthly gross starting salary refers to the starting salary of graduating cohorts, and comprises the basic salary, fixed allowances, overtime pay and commissions, but excludes bonuses.

In terms of full-time permanent employment, Dentistry and Education (NIE) graduates experience the highest percentage at a full 100%, while Music graduates post the lowest at 50%. However, it should be noted that Music graduates have a better employment rate in 2023 at 50% compared to 28.6% and 35.3% in 2022 and 2021 respectively.

Amongst fresh graduates, Information & Digital Technologies graduates see the highest gross monthly median salary at S$5,500, while those from Arts, Design & Media take home the least at S$3,740. For the former, there was a S$125 drop from S$5,625 in 2022, while the latter had an increase from S$3,500 in 2022’s survey. Information & Digital Technologies graduates are also the only graduates that have starting salaries over S$5,000.

According to the Graduate Starting Salary 2023, the median gross monthly starting salary of graduates in full-time permanent employment is S$4,313, with 84.1% of all 2023 graduates having full-time permanent employment. The overall median gross monthly starting salary in 2023 is 2.69% higher than the S$4,200 in 2022.

That said, most starting salaries for university graduates hover around S$4,000. However, these rates are also subject to a variety of factors including industry, specific job roles, and demands of the position. Furthermore, the various perks that come with the job, such as annual leave entitlement, bonuses, and allowances, will also affect the salary.

Read more: 21 Questions To Ask at Your Job Interview

Job market trends in 2024 and beyond

According to the Ministry of Manpower, the labour market continued to expand in Q1 of 2024. Following the cooling labour demand in 2023, the number of job vacancies rose in March 2024 (81,900) from December 2023 (79,800). This reflects the improved economic prospects throughout 2024 and is good news for fresh graduates, with more jobs available for those coming into the workforce.

Mercer’s Total Remuneration Survey (TRS) 2023 has also shown that employees can expect a median salary increment of 4.2% in 2024.

Breaking down by sector, the Aerospace industry is projected to experience the highest salary increase at 4.5%, closely followed by Banking & Finance, Consumer Goods and Lifestyle Retail at a joint 4.4%. However, High Tech (4.1%) and Logistics (4%) are projecting lower salary increments compared to 2023.

The median annual base salary of fresh graduates from 2019 to 2023 has increased by over 12% for most degree qualifications. This could also mean that fresh graduates will be starting their work at a higher pay than their colleagues who have been at the same job for a longer time.

Through the TRS survey, it is also understood that outstanding performers can receive up to two times more bonus payouts than those who just meet their targets in 2024. The increased bonus differentiation is due to factors like a growing emphasis on performance-based rewards to drive employee motivation and productivity, and retaining top performers.

For fresh graduates who might be earning less than their experienced colleagues, this method of awarding bonuses can be a great way to increase your take-home income, especially if you are motivated and have a passion for your job.

According to the 2024 Singapore Salary Guide by Morgan Mckinley, 43% of hiring managers plan to recruit over the next 6 months, and 80% of organisations have found hiring ‘quite or very competitive’ in 2023. This again spells good news for fresh graduates, especially those with a strong portfolio from their internship, as companies are on the lookout for talents to join them.

The same guide also provided in-demand roles for some of the industries surveyed:

While some of the roles, such as managerial ones, are unattainable as a fresh graduate, you can work towards these roles or take up extra courses along the way to develop the skills required for these jobs.

Navigating the job market as a fresh graduate

When joining the workforce for the first time, fresh graduates should consider several key factors to ensure a smooth transition and successful start to their careers. Here are some important points to take note of:

Building your resume

Your resume is the first impression you make to any potential employers. Tailor your resume to the job you are applying for, highlighting relevant skills, internships, projects, and any part-time work that demonstrates your abilities.

In addition to a strong resume, you should also maintain a professional online presence on platforms like LinkedIn. This can significantly enhance your visibility to recruiters, and you can also connect and reach out to potential recruiters and companies on the platform.

Preparing for interviews

You must never under-prepare for an interview, perhaps especially so for a fresh graduate as it is not easy to even secure a job interview. Research the company and the role you’re applying for, and be ready to discuss how your skills and experience make you a good fit. Practise common interview questions and develop a clear narrative about your career goals.

Remember, interviews work both ways; it’s also your chance to assess if the company aligns with your values and career aspirations.

Understanding employment contracts

Before accepting a job offer, it’s important to understand the terms of your employment contract. Do not gloss over the contract even though they seem like meaningless chunks of words.

Pay attention to details such as salary, benefits, annual leave entitlement, bonuses, working hours, and any probationary period. Know your rights and do not hesitate to ask for clarification if anything is unclear. It’s also wise to compare offers if you have multiple opportunities to ensure you make the best decision for your career.

Managing expectations

While it is natural to have high expectations, it’s important to remain realistic. Your first gig may not be your dream job, but it can be a stepping stone towards your goal. It can provide valuable experience and help you build your professional network.

Focus on learning as much as possible and developing skills that will benefit your long-term career. Set realistic expectations about your role and responsibilities, and be prepared to start with entry-level tasks.

Embrace feedback

Feedback is an essential part of professional growth. Be open to constructive criticism, and use it as an opportunity to improve your performance. Remember: not everything is personal.

Reflect on your work and identify areas where you can improve. Refrain from making the same mistake twice.

Set long-term career goals

Last but not least, set long-term goals that you want to achieve in your career. Think about where you want to be in the next five to 10 years and identify the steps you need to take to get there.

Invest in skills that are relevant to your career goals, whether through further education, certifications, or on-the-job training. You might not be in the same company, so you should invest time in forging and maintaining your professional network.

Now that you know more about the starting salaries of fresh graduates and how to tackle the daunting workplace, we have some interesting pieces for you to kickstart your journey. Here’s a guide to living costs in Singapore, a fresh graduate guide to insurance, and of course, how much money to give your parents now that you are working.