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Straits Times
28-05-2025
- Business
- Straits Times
Real wages in Singapore up 3.2% in 2024 but fewer firms plan increases this year: MOM
Real wages grew 3.2 per cent in 2024, up from 0.4 per cent in 2023 as inflation eased, said MOM. ST PHOTO: JASON QUAH Real wages in Singapore up 3.2% in 2024 but fewer firms plan increases this year: MOM SINGAPORE - Real wage growth in Singapore picked up in 2024 as inflation eased, but could slow down this year due to ongoing geopolitical tensions and global trade uncertainties, said the Ministry of Manpower (MOM). Nominal total wages grew by 5.6 per cent in 2024 on the back of continued economic growth, which was comparable to the growth at 5.2 per cent in 2023. After accounting for inflation, which eased from 2023, r eal wages grew 3.2 per cent in 2024, up from 0.4 per cent in 2023, said MOM in its annual wage practices report released on May 28. MOM's forward-looking survey conducted in the first quarter of 2025 indicated a decline in the share of firms planning wage increases. The proportion of firms intending to do so dropped to 22 per cent in March 2025 from 32 per cent in December 2024. 'These trends point to a potential moderation in nominal wage growth in 2025 compared to 2024, especially in trade-reliant sectors such as manufacturing and wholesale trade,' MOM said. The ministry said eight in ten establishments remained profitable in 2024, just slightly lower than 82.1 per cent in 2023. The manufacturing sector saw an increase in profitable firms, while real estate services, construction and wholesale trade did not fare as well. The ministry noted that while more firms raised their employees' salaries in 2024, they did so to reward past organisational performance, rather than to signal forward-looking confidence. Only 3.2 per cent of the firms surveyed cut wages in 2024, down from 6.5 per cent in 2023. MOM said there is continued demand for skilled workers in sectors like the administrative and support services, financial services, as well as community, social and personal services. The administrative and support services reported the highest wage growth at 8.7 per cent i n 2024, largely due to the Progressive Wage Model. This was followed by the financial services at 6.7 per cent, and the community, social and personal services at 5.7 per cent. But wage growth in the manufacturing and wholesale trade industries were below average, coming in at 5.1 per cent and 4.2 per cent respectively, due to the ongoing geopolitical and trade tensions. These two trade-reliant sectors are expected to further moderate in 2025. Rank-and-file workers and junior management employees experienced slightly higher wage growth at 5.8 per cent and 5.6 per cent respectively, as compared to senior management at 5.1 per cent. 'Policy factors, such as increases in the local qualifying salary and the implementation of Progressive Wage Model initiatives have also contributed to higher wage increases among lower-income employees,' the ministry said. Meanwhile, 76 per cent of firms have adopted some form of flexible wage system, said MOM. This means they have either included a monthly variable component (MVC) or an annual variable component (AVC) into their wage structure. However, the share of firms which have fully adopted the flexible wage system remained low at 8.5 per cent. Firms that adopted at least one FWS component reported higher wage growth than those that did not. 'They were able to adjust the variable components to offer bonuses to employees during periods of good economic growth,' MOM said. Check out the Headstart chatbot for answers to your questions on careers and work trends.
AsiaOne
28-05-2025
- Business
- AsiaOne
More firms raise salaries in 2024 than in 2023, Singapore News
More firms increased their employees' wages in 2024, compared to the year before, said the Ministry of Manpower (MOM) in a report on Wednesday (May 28). The proportion of firms that raised employees' wages increased to 78.3 per cent in 2024, up from 65.6 per cent in 2023, according to MOM's report on wage practices for 2024. Concurrently, the proportion of firms that cut employees' pay fell from from 6.5 per cent in 2023 to 3.2 per cent in 2024. The remaining 18.5 per cent of firms kept the wages of their employees constant. Average wage increase has moderated: MOM Among firms which raised wages, the average wage increase in 2024 of 6.6 per cent has moderated from 7.2 per cent 2023. However, among firms which reduced wages, the cut was smaller in 2024 (-3.6 per cent) than in 2023 (-6.2 per cent). As economic growth continued and employers' profits went up, nominal total wages (which includes employer CPF contributions, basic wage and an annual variable component to account for bonuses) grew by 5.6 per cent in 2024 — comparable to 5.2 per cent in 2023. Since nominal wage growth outpaced inflation, which has eased since 2023, real wage growth rose to 3.2 per cent 2024, from 0.4 per cent the year before. Ang Boon Heng, director of MOM's manpower research and statistics department, said on Wednesday that the changes in Singapore's inflation rate "definitely played a very big part" in real wage growth. He added that 2024 saw the highest real wage growth since the Covid-19 pandemic, when Singapore's core inflation reached a high of 4.1 per cent. Over the medium-term, real wage growth continues to be supported by real productivity growth, said MOM. Wage growth varies by industry The ministry added that while wage growth was observed across across the board, it varied based on the industry. Administrative and support services reported the highest growth at 8.7 per cent, which MOM attributed largely to the Progressive Wage Model (PWM) introduced last year. Above-average wage increases were seen in financial services as well as community, social and personal services amid continued demand for skilled workers. Food and beverage services, however, recorded below-average wage growth at 4.8 per cent, while wage increases in wholesale trade (4.2 per cent) and manufacturing (5.1 per cent) were also below average. Wages in the latter two industries are expected to moderate in the coming year, in view of the on-going geopolitical and trade tensions due to the tariffs imposed by US President Donald Trump. Overall, rank-and-file as well as junior management employees saw slightly higher wage growth at 5.8 per cent and 5.6 per cent respectively, compared to senior management at 5.1 per cent. This is partly due to efforts to offset cost-of-living pressures, said MOM. It added that government policies, such as increases in the local qualifying salary and the implementation of PWM initiatives, have contributed to the uplift in wages of lower-income employees. The local qualifying salary refers to the minimum wage firms must pay local employees when they hire foreign employees. It was raised from $1,400 to $1,600 per month since July 1, 2024. [[nid:714094]]
Business Times
28-05-2025
- Business
- Business Times
Singapore's real wages rise at faster rate of 3.2% in 2024; more firms give salary bumps: MOM
[SINGAPORE] Real wage growth in Singapore rose at a faster pace of 3.2 per cent in 2024 as nominal wage growth outpaced inflation, data from the Ministry of Manpower (MOM) showed on Wednesday (May 28). Lower headline inflation of 2.4 per cent in 2024, compared with 4.8 per cent in 2023, meant that 2024's real wage growth was higher than the 0.4 per cent recorded the year before and the highest since Covid-19, stated the ministry's latest wage practices report. This was while the proportion of firms that gave wage increases to their staff rose in 2024, even though the proportion of profitable businesses declined slightly from the year before. Nominal wages of full-time resident employees who had been with the same employer for at least a year increased 5.6 per cent. This figure included employer Central Provident Fund (CPF) contributions. This was a nudge higher than the 5.2 per cent nominal wage growth seen in 2023. 'Looking ahead, we expect wage growth this year to moderate,' said Ang Boon Heng, director of MOM's manpower research and statistics department, in a briefing for reporters. 'It's not going to be news because we know that times are uncertain.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Even though there has been a slight improvement in Singapore's growth outlook in recent weeks, due to de-escalation of US-China trade tariffs, MOM still expects wage growth to moderate in 2025, added Ang. Nominal wage growth is expected to moderate, especially in trade-reliant sectors such as manufacturing and wholesale trade, the ministry said in its annual report. Still, the moderation in wage growth is not expected to be significant, noted Ang, given that the labour market remains tight, as well as with strong labour demand in certain sectors, such as consulting, and health and social services. The ministry's forward-looking survey, conducted in the first quarter of 2025, showed that a smaller proportion of firms plan to give wage increases to their employees. Rank-and-file employees (5.8 per cent) and junior management (5.6 per cent) had slightly higher wage increases than senior management (5.1 per cent), partly reflecting efforts to offset cost-of-living pressures, said MOM. It added that policy factors, such as increases in the local qualifying salary and the implementation of Progressive Wage Model initiatives, contributed to the uplift in wages of lower-income employees. 'The increase in wages of lower-income employees did not have a significant impact on cost competitiveness, as they only form a very small component of total business costs,' said MOM. Sectoral wages In 2024, all industries continued to experience wage growth, though the rate of increase across sectors varied, MOM said. The financial services (6.7 per cent) and community, social and personal services (5.7 per cent) sectors had above-average wage gains as demand for skilled workers continued. Meanwhile, the administrative and support services had the highest wage growth of 8.7 per cent, reflecting the impact of the Progressive Wage Model, said MOM. In contrast, the food and beverage (4.8 per cent), wholesale trade (4.2 per cent) and manufacturing (5.1 per cent) sectors had below-average wage growth. Wage increases in the latter two sectors are expected to moderate this year given ongoing geopolitical and trade tensions. In 2024, the proportion of firms that raised their staff's salaries rose to 78.3 per cent, from 65.6 per cent the year prior. MOM noted, however, that this was due to firms' past organisational performance, rather than forward-looking confidence. Meanwhile, the proportion of businesses that reported they were profitable dipped to 80.8 per cent, from 82.1 per cent previously. Profitability varied across industries, with the real estate services and wholesale trade sectors seeing fewer profitable businesses. In contrast, manufacturing had an increase in profitable firms, but this is expected to decline in the coming year due to global trade tensions. Firms that cut wages remained in the minority at 3.2 per cent, while 18.5 per cent of businesses left salaries unchanged. Flexible-wage system Over the past decade, there has been a gradual decline in the proportion of companies which has implemented at least one flexible-wage system, said MOM. This refers to either the monthly variable component and the annual variable component, or both. Only 8.5 per cent of firms have adopted both systems, while the prevalence of variable wages in the private sector firms was also low at 14.9 per cent. 'Establishments that have implemented at least one flexible-wage system component were more likely to have given wage increases by using the variable wage components,' said MOM. A majority of companies adopt the annual variable component, the ministry noted. Firms are also not adopting the monthly variable component, either due to a lack of awareness or because other firms in their industries do not have a practice of adopting it in their wage structure.
Straits Times
19-05-2025
- Business
- Straits Times
70 years of transformation: How S'pore's workers went from ‘no rules' to new normal
Journey back in time to discover how Singapore's workforce has evolved over the past 70 years. ILLUSTRATION: SPH MEDIA BRANDED CONTENT 70 years of transformation: How S'pore's workers went from 'no rules' to new normal Amid technological disruptions, financial turmoil, and the Covid-19 pandemic, the Ministry of Manpower has empowered employers and workers to adapt and succeed in a rapidly changing job landscape Security supervisor Sivamani Taigrajan, 49, has spent over a decade in the industry. She remembers the work used to be mostly manual – but today, she is trained in new skills, such as operating multiple surveillance systems in a security command centre. 'It is now easier for employees to get a fair wage and increments with the scheduled increases tagged to climbing the ranks by upskilling,' she says. Under the Progressive Wage Model (PWM), workers like Ms Sivamani, in specific sectors, now have clear career pathways and wage progression. The Ministry of Manpower (MOM) is committed to uplifting the wages of lower-wage workers. Over the past five years, their real income has grown by 5.8 per cent. PWM and other policies were a result of Singapore's distinctive tripartite approach that brings together unions, employers and the Government to build consensus on wages in line with Singapore's economic goals. This distinctive tripartite partnership has helped the nation navigate global economic challenges and changing workplace norms. Through technological disruptions, financial crises and the Covid-19 pandemic, this approach has ensured timely policy shifts to strike the right balance between workers' well-being, business needs and economic competitiveness. To further support workforce upskilling, Career Conversion Programmes (CCP) by Workforce Singapore have benefited 6,900 employers and over 37,000 workers across 30 sectors from 2020 to 2024. One of these companies is Re Sustainability Cleantech. The sustainable solutions company created a Quality, Health, Safety and Environment and Sustainability Manager role, and their employees attended the CCP for Sustainability Professionals to learn new in-demand skills and stay competitive. As MOM turns 70, these stories highlight the collective impact of the ministry, workers, business leaders and unions in creating a thriving Singapore. This spirit of progress has driven Singapore's workforce transformation, with workers experiencing higher income growth from 2019 to 2024, compared to other major economies. Explore the interactive page below to see how MOM's policies and partnerships with unions and employers have shaped our nation. 1950s to 1960s: Defying the odds to survive The Ministry of Labour and Welfare (MOLW) was established in 1955 to ease labour tensions and resolve disputes – key to attracting foreign investment while protecting workers' interests. In the same year, MOLW established the Central Provident Fund (CPF) Board, introducing a compulsory savings scheme that has expanded over the years to meet Singaporeans' retirement, housing and healthcare needs. The National Trades Union Congress (NTUC) was formally registered in 1964, representing over 55 affiliate unions with a total membership of 102,000 workers, some 65 per cent of Singapore's workforce then. This laid the foundation for Singapore's distinctive tripartite framework. Workers in a garment factory in 1967. PHOTO: SPH MEDIA 1970s – 1980s: Nurturing an efficient labour force Singapore's industrial policy reached a turning point in 1972 with two significant institutional developments. The National Productivity Board, under the Ministry of Labour, was set up to boost workforce productivity through training during rapid industrialisation. Simultaneously, when labour shortages drove wage pressures on companies, the National Wages Council (NWC) emerged as a tripartite mechanism for structured wage negotiations, replacing the previous ad-hoc system that had often led to industrial disputes and strikes. The introduction of the Skills Development Fund in 1979, which stemmed from a recommendation by the NWC, marked Singapore's pivot from labour-intensive, low-skilled and low-wage industries to technology-intensive, high-skilled and high-wage ones. The formation of the Singapore National Employers Federation (SNEF), in 1980, completed the tripartite framework which supported Singapore's industrialisation. By 1984, Singapore successfully attracted higher value-added industries, diversifying employment opportunities and creating better jobs for Singaporeans. Essential Maintenance Services Unit staff tending to residents' requests in 1986. PHOTO: SPH MEDIA 1990s – 2000s: Boosting support for workers and employers Amid talent shortages and growing global competition, Singapore recognised the untapped potential of senior workers' experience and skills. The Ministry, in partnership with tripartite partners NTUC and SNEF, introduced the retirement age legislation in 1993 – and later re-employment age policies – to support the inclusion of seniors in the workforce. Since then, its regular review of retirement and re-employment ages has ensured that seniors can continue to work if they want to, offering them financial security for retirement. The Ministry was renamed MOM in 1998 to reflect its expanded and more dynamic role in a globalised world. The introduction of the S Pass and talent schemes under the Manpower 21 Plan opened Singapore's doors to global talent which, in turn, drew more multinational firms to the city-state's shores. This openness created a win-win situation. Foreign investments created more jobs and opportunities for Singaporeans. Local businesses benefited from the exchange of skills and expertise with foreign companies and professionals, speeding up development and growth of various industries here. As local companies became more productive and took on larger projects, they not only created better-paying jobs for Singaporeans but also moved up the value chain. During that time, more Singaporeans also took on leadership roles in international firms, both at home and around the world. Between 2003 and 2008, key institutions were established: The Workforce Development Agency (reconstituted into Workforce Singapore in 2016) was formed in 2003 in response to the Economic Review Committee's recommendation to ensure jobseekers were equipped with the relevant skills required to fill existing job vacancies as Singapore was still recovering from the Asian Financial Crisis and the severe acute respiratory syndrome (Sars) outbreak. It focused on tackling issues of unemployment, reskilling and upskilling for Singaporeans. The Tripartite Alliance for Fair and Progressive Employment Practices (Tafep) was formed in 2006 by the tripartite partners to promote the adoption of fair, responsible and progressive employment practices. The Workplace Safety and Health Council was established in 2008 to enhance workplace safety standards through industry engagement and best practice promotion. In the last five years, fatality rates averaged 1.1 per 100,000 workers – comparable with top-performing countries like the United Kingdom, Sweden and Germany. 2010s – 2020s: Adapting to changes, progressing the workforce Cleaners, security officers and lift and escalator specialists are among occupations covered by the Progressive Wage Model. PHOTO: SPH MEDIA The PWM rolled out in 2012 helps lower-wage workers through a structured pathway to increase their wages by upskilling and improving productivity. Since 2022, the PWM has expanded to cover nine sectors and occupations. To better support migrant workers' well-being and safety, housing standards were strengthened through the Foreign Employee Dormitories Act – enacted in 2016 and expanded in 2023 to cover 1,600 dormitories. New dormitory standards were later introduced in 2021 and will also apply to existing dorms by 2040, improving liveability and pandemic preparedness. Since 2019, 17 Jobs Transformation Maps have guided employers on job redesign and reskilling in the finance, infocomm and trade sectors. This, in turn, helps companies to be more efficient and productive. One such company, The Ascott, regularly reviews job roles to identify opportunities for redesign, aiming to reskill and develop their staff through training. The Majulah Package addressed retirement adequacy for Singapore's earlier workforce generations who may have lower CPF savings, targeting citizens born in 1973 or earlier through different bonuses. In an era of accelerating technological change and economic disruption, jobs worldwide are being transformed or displaced at an unprecedented pace. MOM has responded by boosting job matching services and career transition support. The SkillsFuture Jobseeker Support scheme, announced during the National Day Rally in 2024 and effective from April 2025, provides temporary financial support to lower- and middle-income involuntarily unemployed jobseekers while they take part in meaningful job search activities. Announced in 2024, the Platform Workers Act that came into force in January 2025 provides protection to platform workers. The legislation mandates CPF contributions, work injury compensation, and formal representation rights through platform work associations. Initiatives such as Workforce Singapore's Careers Connect On-the-Go help support Singaporean workers in their job search and career transition efforts. PHOTO: SPH MEDIA Key shifts for the future The landmark Workplace Fairness Bill was passed in January 2025, marking a significant evolution in Singapore's labour legislation, codifying anti-discrimination protections that build upon Tafep's work and the established tripartite framework. It introduced legal safeguards against discrimination in employment decisions, including hiring, termination and performance evaluations. Amid rapid technological shifts and global uncertainty, it is key for Singaporeans to take charge of their career health, and they can do so through Workforce Singapore and SkillsFuture Singapore's schemes and programmes to stay competitive and remain relevant. For instance, the new Overseas Markets Immersion Programme offers global exposure in roles like regional sales, business development and market analysis – providing companies with salary and overseas allowance support. Find out how these MOM initiatives are shaping the future of work in Singapore. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
03-05-2025
- Politics
- Straits Times
GE2025: PAP retains Chua Chu Kang GRC with 63.59% of votes; wins 75.83% of votes in Bukit Gombak SMC
SINGAPORE - The People's Action Party team led by Manpower Minister Tan See Leng has retained Chua Chu Kang GRC for a fourth consecutive term, winning 63.59 per cent of the valid votes against the Progress Singapore Party (PSP) on May 3. The winning margin is higher than the 58.64 per cent of votes it received in the last election in 2020. Meanwhile, PAP's Low Yen Ling secured the neighbouring Bukit Gombak SMC with 75.83 per cent of valid votes against PSP's Harish Pillay. Dr Tan, 60, who was deployed to Chua Chu Kang to replace Deputy Prime Minister Gan Kim Yong to lead the PAP team in a surprise move on Nomination Day, will enter his second term as an MP. He leads lawyer and second-term MP Zhulkarnain Abdul Rahim, 44, and PAP newcomers Jeffrey Siow, 46, former permanent secretary at the trade and industry and manpower ministries, and neuroscientist Choo Pei Ling, 38. The team defeated a PSP team comprising lawyer Wendy Low, 48, stockbroker S. Nallakaruppan, 60, safety consultant A'bas Kasmani, 71, and former secretary-general of the Singapore Manufacturing Federation Lawrence Pek, 55. The PSP team received 36.41 per cent of the votes, down from their results in GE2020. In 2020, Chua Chu Kang GRC proved to be where the PSP had achieved one of its best results, having received 41.36 per cent of the votes. This is the second time that PSP is contesting in the GRC. New anchor minister Dr Tan spent the campaign racing to introduce himself to residents, who were seen quizzing him about DPM Gan's sudden redeployment to Punggol GRC. DPM Gan has helmed the PAP team in Chua Chu Kang GRC since 2011. Dr Tan had earlier pledged to see through existing plans for the GRC, such as new MRT stations to improve the area's connectivity and some $212 million worth of neighbourhood enhancements under the town council's five-year plan. The PAP team will come up with a 100-day plan to see how concerns raised by residents can be addressed, such as connectivity issues in Tengah, which will be prioritised. Both teams said during the hustings that residents often flagged cost‑of‑living woes. PSP's Lawrence Pek spearheaded PSP's call for a universal minimum wage - a proposal that Dr Tan and Mr Siow rebuffed several times on the hustings, defending measures like the Progressive Wage Model to support low-income workers. In Bukit Gombak, the ruling party's Ms Low has won 75.83 per cent of all valid votes, and PSP's Pillay, 24.17 per cent. The newly carved out SMC, comprising estates from Bukit Gombak and Hillview, has 26,427 registered voters. Speaking to supporters at the Bukit Gombak stadium after she was declared the winner, Ms Low said: 'I am deeply grateful to each and every one of you, for your time, for your efforts, for your sweat, for your sacrifices, and on some days, for your tears as well. I could not have done this without you.' 'I look forward to continuing the journey with you to write the next Bukit Gombak chapter.' Ms Low's campaign has focused on her role in various projects in the ward, like the opening of Hume MRT station, which she had lobbied for with residents over the years. She frequently organises community events and outreach programmes for the residents who live in condominiums, which form about two-thirds of the homes in the ward, based on ST's analysis using Department of Statistics data dated June 2024. Ms Low, who has been part of PAP's Chua Chu Kang GRC team since the 2011 General Election, had earlier committed to work with the PAP team in Chua Chu Kang GRC on the $212 million five-year town plan which includes Bukit Gombak . Even though Bukit Gombak is now an SMC, she had said earlier that it does not change the fact that it will still be very much part of the big Chua Chu Kang family. Bukit Gombak will continue to be served by Chua Chu Kang Town Council and share its resources. Mr Pillay, a tech veteran whose past roles include growing software company Red Hat in Singapore, had earlier pointed out that he was among those who called for the software that underpins the TraceTogether system used for contact tracing in the Covid-19 pandemic to be made open to scrutiny to improve trust. The Government had taken up his suggestion to do so, he claimed. His proposal includes an open software platform that town councils can use for estate management, no matter the party affiliation. He had pledged to help ensure that taxpayers' money is not wasted during a transition following an election, and that the town council's administrative products and services would be available from day one. Join ST's WhatsApp Channel and get the latest news and must-reads.
