After working for a few years, salary progression becomes a key consideration for many professionals in Singapore. Experience plays an important role, but educational qualifications can also influence how quickly individuals move into higher-paying positions and how their earnings grow over time.
In 2025, university graduates earned a median salary of S$9,038 — nearly 78% higher than those with diplomas and other professional qualifications, according to the Ministry of Manpower’s Labour Force in Singapore report.
What Is the Salary Gap Between Degree and Diploma Holders in Singapore?
Discussions around diploma vs degree salary in Singapore often focus on broad comparisons, but the difference is evident at the point of entry into the workforce. Based on recent Graduate Employment Survey findings, university graduates in full-time permanent employment earn a median gross monthly salary of around S$4,500, while diploma holders, such as polytechnic graduates, start at approximately S$3,000. A gap that tends to widen as the career progresses.
How Does the Salary Gap Grow Over Time in Singapore?
In the early stages of career development, both degree and diploma holders are gaining experience and establishing themselves in the workforce. However, as professionals progress to mid-career roles, the gap becomes more visible. Degree holders tend to progress faster into professional, managerial, and executive roles that carry higher salaries and earning potential over time.
Comparing income in the broader workforce gives a clearer picture. The MOM Labour Force in Singapore 2025 report shows that the median gross monthly income from employment, including employer or platform operator CPF contributions, was S$9,038 for full-time employed resident degree holders in 2025, versus S$5,775 for all full-time employed residents. According to the report, this gap reflects the concentration of degree holders in professional, managerial and executive roles and in higher-paying sectors.
Why Do Degree Holders Earn More Than Diploma Holders in Singapore?
Diploma vs degree salary in Singapore depends on how roles, industries, and career pathways are structured in the job market. Educational qualifications often influence the types of positions individuals can access, especially at the entry and mid-career levels.
One of the key reasons degree holders tend to earn more is their access to a wider range of roles. Many positions, particularly those requiring specialised knowledge or technical expertise, are structured with degree-level entry requirements. As a result, degree holders are more likely to enter roles with higher salary bands, while diploma holders may find certain career pathways less accessible without additional qualifications.
Qualifications can also influence how quickly professionals can advance and signal to employers their ability to handle complex tasks and take on higher responsibilities. This makes degree holders more likely to be considered for senior and leadership roles, often resulting in faster salary progression over time.
Is a Diploma Enough for Long-Term Career Growth in Singapore?
A diploma provides a strong foundation for entering the workforce, equipping individuals with practical, industry-relevant skills that support early career development. Many diploma holders transition into full-time roles shortly after graduation, particularly in industries where applied knowledge and hands-on experience are valued.
However, as careers progress, a diploma may not support long-term growth, depending on the industry and role requirements. In Singapore’s job market, educational qualifications continue to influence not only salary progression but also access to roles with broader responsibilities. As a result, career advancement can vary across sectors.
Whether a diploma is sufficient for long-term career growth depends on individual goals and career direction. For some, it provides a solid platform to build experience and progress within a specific field. For others, further education may become relevant over time, particularly if their career path evolves towards roles with different expectations or greater scope. For those considering this next step, LSBF Singapore offer structured pathways that allow diploma holders to build on their existing experience while pursuing bachelor’s programmes.
Conclusion
The difference between diploma and degree holders in Singapore extends beyond starting salaries to how careers develop over time. While both pathways offer opportunities to enter the workforce and build valuable experience, differences in role access, progression, and industry expectations can influence earnings growth at different career stages.
Understanding these differences can help individuals make more informed decisions about their education and long-term career direction.
FAQs
1. How long does it take to close the salary gap?
The timeline for closing the salary gap between diploma and degree holders can vary by industry, role, and individual career progression.
2. Can I study a degree while working in Singapore?
Yes, it is possible to study for a degree while working in Singapore. LSBF Singapore offers flexible study options designed for working professionals, including part-time programmes, evening classes and weekend classes.
3. What industries have the biggest salary gap in Singapore?
The salary gap between degree and diploma holders can vary across industries, depending on how roles are structured and the level of qualifications required.
4. Can a diploma holder close the salary gap without a degree in Singapore?
In some cases, diploma holders can narrow the salary gap without pursuing a degree, particularly through experience, strong performance, and strategic career moves.
5. How does education level affect career progression in Singapore?
Educational qualifications can influence career progression in Singapore by determining access to roles and opportunities.
