Who is getting the 2% to 9% salary increases and when do they start?

About 22,000 Singapore civil servants will receive salary increases ranging from 2% to 9%. The Public Service Division says the adjustments will take effect from Aug 1. The move aims to keep public-sector pay aligned with market benchmarks and to support talent retention across key roles.

Why did the Public Service Division adjust pay now?

The Public Service Division said salaries were adjusted to stay competitive with market rates. Benchmarking helps attract and retain talent in critical functions. It also reflects ongoing private-sector pay trends. The change is designed as a calibrated step, rather than a broad stimulus, to maintain service quality and long-term workforce stability.

Will this move raise inflation in Singapore?

The direct inflation effect should be limited because the adjustment covers a defined group. Some lift to consumer demand is likely as disposable incomes rise. Broader inflation risks depend on whether private-sector firms raise wages widely. We will watch core inflation and retail sales data after Aug 1 for clearer signals.

What should investors in Singapore watch next?

Track wage growth data, labour market reports, core inflation, and retail sales. Listen for company guidance on staff costs and hiring. Consumer-facing firms and retail-linked REITs could benefit if spending improves, while labour-heavy firms must show productivity gains. The Aug 1 reset is a key reference point for earnings commentary in subsequent quarters.

Global Market Insights

February 21: Singapore Civil Servants’ 2%-9% Pay Hike Starts Aug 1

ByHuzaifa Zahoor February 21, 2026February 21, 2026

Singapore civil servants pay r will rise by 2% to 9% from Aug 1 for about 22,000 officers, according to the Public Service Division. The move aims to keep public-sector salaries aligned with market benchmarks. We break down what changes, why it matters, and what investors in Singapore should watch. We also outline likely effects on Singapore wage growth, inflation, and domestic demand, plus the sectors that could benefit or face cost pressure after these 2% to 9% raises take effect.