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Written Answer to PQ on Tenth Percentile Wage and Progressive Wage Model Coverage

NOTICE PAPER NO. 2965 OF 2024 FOR THE SITTING ON 06 AUGUST 2024
QUESTION NO. 5999 FOR WRITTEN ANSWER

MP: Mr Desmond Choo

To ask the Minister for Manpower (a) what is the latest nominal gross monthly wage, excluding employer CPF, of the bottom tenth percentile (P10) of resident full-time income earners in Singapore; and (b) what proportion of P10 and below are covered under the Progressive Wage Model and the Occupational Progressive Wages scheme.

Answer:

1.Currently, up to 9 in 10 of full-time lower-wage workers1 benefit from the Progressive Wage Model (PWM)2, Local Qualifying Salary (LQS), and the Progressive Wage Mark accreditation scheme.

2.In 2023, the nominal gross monthly income from employment (excluding employer CPF) of full-time employed residents at the tenth percentile was $1,800, a cumulative increase of 50% from $1,200 in 2013.3

3.Among full-time resident employees earning at or below $1,800 (i.e. B10 workers), about 5 in 10 are covered by PWM. Another 3 in 10 are covered by LQS.4 From July 2024, the LQS was raised from $1,400 to $1,600. This means that B10 workers who were previously earning below $1,600 would have seen their wages increase at least to $1,600. In a tight labour market, workers who are not directly covered by PWM or LQS should also see increases in their wages as firms compete for manpower.

4.In addition to PWM and LQS, the Government provides lower-income workers with additional support through the Workfare Income Supplement (WIS) Scheme. Eligible workers aged 30 years and older can receive WIS payments of up to $4,200 per year. As announced at Budget this year, the maximum WIS payment will be increased to $4,900 per year from 2025.

FOOTNOTE

  1. Lower-wage workers refer to full-time resident employees earning at or below the 20th percentile gross monthly income from employment (excluding employer CPF) of full-time employed residents.
  2. PWM covers resident employees across nine sectors and occupations. Sectoral PWM covers the Cleaning, Security, Landscape, Lift and Escalator, Retail, Food Services and Waste Management sectors. Occupational PWM covers the Administrator and Driver occupations.
  3. Source: Comprehensive Labour Force Survey (2023), Manpower Research and Statistics Department, MOM.
  4. Source: Comprehensive Labour Force Survey (2023) and administrative records, Manpower Research and Statistics Department, MOM.