Yahoo Finance 
How to negotiate a higher salary in Singapore (March 2024)
In Singapore, where the cost of living continues to rise, negotiating a competitive salary is more important than ever.
SINGAPORE – Negotiating for a higher salary can seem intimidating, but it need not be a topic you avoid bringing up at work and you can be successful with the right approach.
In Singapore, where the cost of living continues to rise, securing a competitive salary is more important than ever and is a crucial step in advancing your career. Whether you're entering a new job or seeking a raise in your current position, knowing how to effectively negotiate can make a significant difference.
To help you navigate the process, Yahoo Finance Singapore has put together a basic guide on asking your employer for a higher salary.
Salary guide: What is the average salary in Singapore?
Before we dive into negotiating salaries, it is essential to clearly understand and benchmark the average salary for your position in Singapore.
Based on the 2023 Joint Autonomous Universities Graduate Employment Survey conducted by the National University of Singapore (NUS), Nanyang Technological University (NTU), Singapore Management University (SMU), and the Singapore University of Social Sciences (SUSS), the median gross monthly salary among fresh graduates in full-time permanent employment increased to S$4,313 in 2023 from S$4,200 in 2022.
Is it okay to ask for a higher salary?
Asking for a higher salary can feel uncomfortable, but it's a necessary step in advocating for what you're worth. However, timing is key when broaching the subject with your manager.
According to Edwin Neo, a Career Coach at Workforce Singapore (WSG) and a Certified Career Practitioner accredited under WSG's Career Development Framework, there are several work scenarios that can be considered a good opportunity to bring up the subject. For example, when a job offer is received, during employee performance reviews, when an employee takes on additional responsibilities, when a significant project is completed by the employee, or when market conditions have changed within the industry.
"The right time to negotiate your salary is when you have leverage, such as during a job offer, performance review, or when you have demonstrated increased value to the company. However, it's important to approach negotiations professionally and be prepared to articulate why you deserve a higher salary based on your skills, experience, and contributions," said Neo.
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How to ask for a higher salary
Whether you are a candidate considering a job offer or an existing employee with some experience who has progressed in your career, Neo said there are a few tips that anyone can follow when negotiating salaries.
Firstly, employees should always approach the negotiation in a professional, amiable, and cordial manner. Employees should also communicate the value that they bring to the role by reiterating their skills, experiences, and proven track record of their ability to add value to the organisation.
"Be prepared for the negotiation by anticipating questions or objections, focusing on the value you bring to the organisation, and practice the salary discussions with a friend or mentor to build confidence and refine your pitch," said Neo.
Additionally, Neo advised employees to come to the negotiating table with a bottom-line figure or minimum salary requirement, which they must be prepared to walk away from if the demand is unmet. However, Neo added that the remuneration package should also be considered in totality as there could be other components such as sponsored training and flexible work arrangements that would enable employees to achieve the lifestyle they desire.
Negotiating a salary prior to being offered the job is somewhat premature and may even convey a negative impression to the employer unless the prospective employer brings up the subject.
"In the event that it turns out to be unsuccessful, do not lose hope. Look at the remuneration package holistically and see if the employer could adjust other components, such as including additional vacation leave or sponsoring your professional memberships while keeping in mind your bottom-line figure.
"Regardless of the outcome, be professional and thank the hiring manager or employer for the discussion opportunity. If the negotiation was unsuccessful, politely ask for another window down the road to revisit this conversation after you have had more time to prove your value-add. If appropriate, seek feedback on why the negotiation was unsuccessful so that you can learn from this experience.
"Ultimately, it is imperative that you maintain good etiquette towards salary negotiations, always maintaining a cordial and professional approach. This will go a long way in contributing towards a positive professional reputation and leave the door open for future opportunities," said Neo.
Can you negotiate your salary after receiving an offer letter?
In most cases, workers negotiate their salaries when they receive a job offer from an employer, for example, in the event that the offered salary is below expectation. This window of consideration is often the best time to negotiate one's salary, as job candidates would have some leverage in the negotiation process since the employer has already decided that they want them for the position, according to Neo.
However, Neo emphasised that salary is only one component of an employment contract and that job candidates should consider the overall remuneration package, which would include benefits such as vacation leave, allowances, fixed and variable bonuses, stock options, and commissions, as well as other important factors such as potential career growth and upskilling opportunities.
While negotiating a salary after receiving an offer letter may be the best time to discuss it, bringing up the subject after commencing employment is more complex as both parties would have agreed to the terms of employment at that point. Under certain circumstances, however, Neo believes that this is still possible.
"For example, if market conditions change or if you are taking on additional responsibilities. However, it is important for you to approach salary negotiations tactfully and professionally, considering factors such as company policies, market rates for the position, and the specific circumstances of the job offer or employment situation. One also needs to be cognisant that many employers have salary structures and budgets to conform with," said Neo.
On the other hand, Neo said that negotiating a salary prior to being offered the job is somewhat premature and may even convey a negative impression to the employer unless the prospective employer brings up the subject.
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