Man asks, ‘Why are companies so insistent on linking everything to your last pay cheque instead of experience and skills?'

Independent Singapore

12-05-2025

- Advertisement -
SINGAPORE: A Singaporean man took to Reddit to question why employers continue to base job offers on a candidate's last-drawn salary instead of evaluating them based on their experience and skill set.
In a recent post on the r/AskSingapore forum, the man shared that during the early stages of his career, he had deliberately accepted roles with slightly lower pay in order to gain relevant and valuable experience.
'I believed in what the boomers were saying, [about] how I should prioritise the right experience over short-term pay — e.g. front office over back office even if the pay is less, and it was ok to be underpaid at the start and the money will come later.'
Years into his career, however, he expressed regret over that decision. After attending several job interviews, he noticed that prospective employers were unwilling to offer more than a 10 to 15 per cent increment from his previous salary even when they acknowledged that the resulting offer would still be below current market rates.
- Advertisement -
'I would have all my experience reset to zero as if I was an entry level hire,' he said. 'The logic makes zero sense to me. By their logic I should just take only the highest paying job even if I learn zero skills because the salary will always be benchmarked against that?'
The man also took issue with another piece of popular career advice — taking a pay cut to work in developing ASEAN countries for 'overseas exposure'. While many seasoned professionals suggest that such experience can boost one's portfolio, he claimed that Singapore employers often weaponise the lower foreign salary against candidates when they return.
'If you take a 50% pay cut to work in Vietnam, aka you should be getting a 100% pay rise just to get back to your old SG number (to be honest, you would want an increment on top of that to reflect your overseas experience), but HR will say some stuff like, 'Max we give is 20–25% on your Vietnam number,'' he said.
'It's completely stupid because cost of living and the market are completely different, but I'm not sure what's the right way to get out of an underpaid cycle,' he continued.
- Advertisement -
Frustrated, he ended the post by asking fellow users: 'Does HR take joy in lowballing people knowing they pay far below market and will face high attrition? Or is high attrition expected everywhere so everyone should just be constantly interviewing 24/7?'
'If you don't want to be exploited, know how much you can get paid.'
In the thread, many users shared the same frustrations, pointing out that it's pretty common for employers in Singapore to place too much weight on a candidate's last-drawn salary.
One user said, 'I agree, this is a practice which benefits the employer. Jobs should pay as per the decided pay range and not based on the candidate's last drawn.'
Another remarked, 'If your last pay is low, they'll continue to lowball. If your last pay is high, they'll tell you no budget and lowball you, cannot win one.'
- Advertisement -
That said, a few users felt the man might have simply encountered the wrong companies, as some employers do base their offers on skills and experience instead.
As a testament to this, one user shared their personal experience, writing, 'Many companies I've interviewed with did not ask for my current or previous salary. They were more keen in my experiences and expected salary. I have not shown any pay slips to any company.'
Another added, 'Companies try to keep their costs down at your expense. If it's a good company, they'll make sure you're being paid a fair rate by giving appropriate hikes, on par with the rest of the industry.
'If the company is not good, they give you 1-3% hikes and tell you to be grateful for that because it's worse elsewhere. At the end of the day, they're there to look out for themselves which means if you don't want to be exploited, know how much you can get paid outside and jump ships if your company does underhanded stuff.'
Some users also encouraged him to improve his negotiation skills during job interviews to secure better offers. One wrote, 'If you have marketable experience and skills, shift the conversation away from your last drawn [salary] to the value that you can bring to the company, this makes getting at least the industry average much easier.'
Be clear about your salary expectations from the start
According to MyCareersFuture, if you're currently underpaid or hoping for a bigger jump in your salary when switching jobs, it's important to take a proactive approach. Employers often ask for your last drawn pay so they can match it or justify the amount they plan to offer. But this can be limiting if your previous salary doesn't reflect your true market value.
That's why it helps to be upfront about your salary expectations from the start. Instead of waiting until later rounds of the interview to discuss pay, try bringing it up early in the process. Some candidates think it's better to 'impress first and negotiate later,' but this can sometimes leave a bad impression or make things more difficult. Being clear from the beginning shows confidence and helps set realistic expectations on both sides.
Also, career experts say that if you're asking for a higher salary, you should be prepared to explain why. Highlight your skills, experience, and any extra value you bring to the role. This can make it easier for employers to understand where you're coming from and increase your chances of getting an offer that reflects your worth.
Read also: 'I OT till 9pm almost daily' — 25 y/o earning $3K/month burnt out just 2 weeks into her new job, considers quitting without backup plan
Featured image by Depositphotos (for illustration purposes only)