Companies in Singapore are placing greater priority on software engineers who can work effectively with artificial intelligence tools, particularly in senior positions, a new report found [1]. The report reveals that software engineers with AI skills earn on average 25% more than their peers without such expertise [1].
This pay premium became apparent starting in 2024, as demand for AI capabilities grew but had not yet translated into higher wages, the report said [1]. Since then, salary growth has varied by seniority level. Senior, lead, and managerial roles saw the largest increases, rising by more than 10%, while junior engineers experienced a 5.3% rise and mid-level engineers only 1.7% [1].
The top 10% of engineers recorded salary increases of up to 19%, reflecting strong market competition for highly skilled talent [1]. A South China Morning Post headline summed up the trend, saying, “Singapore software engineers with AI skills earn 25% more: ‘no longer nice-to-have’” [1].
These figures indicate a marketplace that strongly rewards deeper AI expertise, especially in senior roles where such skills are critical. Employers are shifting compensation to align with these evolving requirements.
The report did not specify exact figures for 2026 but highlighted that the shift towards higher AI-based remuneration accelerated after 2024 [1]. Companies are expected to continue adjusting salary bands to attract and retain AI-capable engineers in Singapore's competitive tech sector.
The findings provide the most recent insight into how AI skills impact software engineering wages in Singapore, setting benchmarks for pay negotiation and recruitment strategies moving into the current year.
