This will affect first-year hires in functions such as audit, tax, and enterprise risk services
TWO of the biggest professional services firms in Singapore, Deloitte and KPMG, will be raising their starting salaries for certain accounting functions, in line with recommendations by an industry taskforce.
On Friday (May 10), the Accountancy Workforce Review Committee (AWRC) released a report on how to boost the supply of accountancy talent in Singapore, amid waning interest in the profession.
One challenge faced by younger accountants, said the report, was that their starting salaries were lower than those of their peers. A key recommendation is therefore for employers to offer higher pay in earlier stages of an accountant’s career, including starting salaries.
In respective releases on Sunday (May 12), Deloitte Singapore and KPMG in Singapore said they would raise starting salaries in line with the recommendations.
Separately, professional services firms EY Singapore and RSM Singapore echoed their support for the recommendations but did not announce pay hikes.
From Sep 1, Deloitte Singapore will raise its starting monthly salaries for all first-year audit associates: to S$4,500 for fresh graduates joining Deloitte’s FasTrack programme – an accelerated programme for accountancy graduates – and S$4,100 for non-FasTrack first-year auditors.
With these changes, the annual salary package for fresh graduates joining as auditors will be 20 per cent higher than the current package.
Including these salary adjustments, Deloitte will invest about S$62 million to nurture audit talent within their first five years with the firm. This includes sending them for professional qualification courses and training in areas such as generative artificial intelligence (AI), data analytics, and sustainability assurance.
From October, KPMG Singapore will raise starting salaries – as well as salaries of eligible employees up to the manager level – across its audit, tax, and enterprise risk services functions.
Some S$30 million has been allocated for this, as part of KPMG Singapore’s investment of more than S$100 million over the next five years to advance workforce capabilities and drive technological innovation in professional services.
The sum also includes over S$25 million for comprehensive training and upskilling programmes for skills in areas such as AI, data literacy, analytics as well as environmental, social and governance (ESG). Another S$50 million will go towards technological advancements, including generative AI.
This builds on previous investments in recent years. In June 2023, the firm said it would commit S$50 million over the next five years to boost financial services innovation and ESG capabilities.
The latest salary adjustments are on top of an earlier round in May 2022, where the majority of employees saw higher pay, including increases of up to 20 per cent for starting salaries of entry-level professional staff.
Deloitte Singapore’s country managing partner Shariq Barmaky highlighted an “imbalance” in recent years, with undergraduates displaying less interest in accountancy even as demand for auditors is rising.
“Deloitte is proud to do our part to elevate the accountancy profession in Singapore by serving as a catalyst to drive its evolution and increase its attractiveness, with a goal to equip a future-ready workforce,” he added.
Lee Sze Yeng, managing partner of KPMG Singapore, noted that the business landscape has been reshaped by macroeconomic uncertainties, regulatory changes, and the emergence of new technologies and ESG.
“KPMG’s strategic investment in competitive salaries, technological advancements, and comprehensive training initiatives aims to support our people in navigating these complexities,” he said.
