Singapore employers boost AI pay as wage caution grows

PERSOL has released its Singapore Salary Guide 2026/2027, which ranks AI and data analytics among the top 10 in-demand skills across all 14 functions and industries covered.

Employers are paying higher salaries for workers who can support AI adoption, cloud optimisation and cybersecurity resilience, even outside traditional technology roles. At the same time, the pay environment is becoming more cautious: 51% of employers plan to moderate wages or freeze pay in 2027, up from 48% in 2026.

According to the guide, monthly base salaries range from S$6,000 to S$12,000 for AI engineers, S$7,500 to S$14,000 for data scientists, and S$7,000 to S$15,000 for cybersecurity managers.

The findings suggest demand for technical skills has spread to sectors including banking, healthcare and sustainability. Employers are also placing greater emphasis on specialised, hands-on experience, particularly for PMET roles, as they look to control workforce costs.

Foo See Yang, Managing Director and Strategic Business Group Head, PERSOL APAC, said the labour market remained steady despite external pressure.

"In Singapore, the labour market has demonstrated resilience despite external headwinds. Employers are becoming more cautious in their hiring decisions, placing greater emphasis on skills and experience. Professionals are also increasingly expected to embrace lifelong learning to strengthen their capabilities amidst a challenging economic environment," Foo said.

Pay pressure

The guide links the stronger focus on specialist hiring to rising payroll costs. It notes that CPF contribution rates for employees aged 55 to 65 will rise in January 2027, while the Occupational Progressive Wage will increase in July 2027 under National Wages Council guidelines.

Singapore's labour market continued to expand in the second quarter of 2026, with total employment rising by 11,400, based on Ministry of Manpower data cited in the guide. Retrenchment incidence remained low at 0.2%, marking the 19th consecutive quarter of employment growth, the report said.

Even so, businesses are becoming more selective. Organisations are balancing hiring needs against cost control, increasing scrutiny over whether to recruit specialist staff externally or train existing employees.

This calculation is particularly acute in AI and data roles, where salaries are already at a premium. The guide advises employers to combine targeted external hiring with internal upskilling to build teams while limiting additional costs.

"AI and data skills are no longer confined to technology roles, and professionals who invest in upskilling will be best positioned to stand out. For employers, clear development pathways and the smart use of technology will be key to building resilient, future-ready teams. With specialist AI and data talent commanding premium salaries, combining targeted external hiring with the upskilling of existing teams will help businesses build capability while keeping costs in check," Foo said.

Sector demand

In banking and finance, hiring remains active for revenue-generating roles across wealth management, corporate banking, treasury and insurance. Private banking relationship managers earn between S$8,000 and S$20,000 a month, while senior relationship managers can earn up to S$30,000, according to the guide.

The report also highlights the value of formal credentials in regulated sectors. Certifications such as CACS, CMFAS, CFA and CAMS can improve a candidate's standing in financial services recruitment.

Healthcare is another area where specialist shortages remain pronounced. The guide cites Ministry of Health projections showing the workforce growing 20%, from 129,000 in 2024 to about 156,000 by 2030, with continued demand for physiotherapists, occupational therapists, radiographers and pharmacists.

This demand is being driven by registration requirements and a limited local talent pipeline. Similar constraints are emerging in sustainability and cross-border roles, where employers are seeking staff who can work across markets and regulatory systems.

Shortages of specialised and certified talent can slow expansion plans and affect client delivery, especially in tightly regulated industries, PERSOL said. In response, employers may need to start recruitment earlier and rely on flexible work arrangements and structured career development to attract staff.

For companies facing rising wage bills, the guide argues that technology adoption will play a larger role in workforce planning. "Rising payroll costs will be felt most keenly in labour-intensive sectors, making it more expensive to attract, retain and grow talent. Employers will need to review hiring budgets, strengthen workforce planning and adopt AI-enabled workflows to sustain productivity," Foo said.