Wage transparency in S’pore: Should your colleagues know how much you earn?

In recent years, the issue of pay inequality has gained significant attention worldwide. Addressing this concern has become a central focus for organisations and governments alike, with many exploring various strategies to achieve fairer compensation.

One such strategy is wage transparency, which involves revealing salary information to employees and the public.

Advocates argue that increased transparency can foster fairer pay practices, promote employee satisfaction, and enhance workplace equality. However, there are also concerns related to privacy, competition, and other potential negative impacts on companies.

Wage transparency is also often billed as a solution to alleviate recruitment and retention challenges.

What is the stance on this for Singapore companies? Should employers disclose the salary range of all roles in their organisation, as well as how that salary range was derived?

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Salary clarity empowers applicants to tailor their job search and gain a realistic understanding of their growth potential, while recruiters can focus on candidates who align with the provided salary information.

However, concerns about competitors using salary information to poach employees and the inclusion of non-cash components in compensation packages often dissuade companies from being transparent.

More senior roles, in particular, are less likely to disclose salary details due to the inclusion of components such as Restricted Stock Units (RSUs) or Employer Stock Options (ESOPs) that are not reflected in salary guides.

Although there is no mandate for public disclosure of salary ranges or individual salaries in Singapore, resources for salary benchmarking are available.