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Written Answer to PQ on Wage Convergence

Employment practices

NOTICE PAPER NO. 3131 OF 2024 FOR THE SITTING ON 14 OCTOBER 2024 QUESTION NO. 6170 FOR WRITTEN ANSWER

MP: Ms He Ting Ru

To ask the Minister for Manpower (a) what are the current wage convergence targets for the 20th percentile of income earners; and (b) what is the expected path of convergence of wage levels for the 20th percentile of income earners between 2023 and 2030.

Answer:

1. From 2013 to 2023, real wages of the 20th percentile worker have risen cumulatively by 30%, faster than that of the median (50th percentile) worker at 22%.1

2. As recommended by the 2021 Tripartite Workgroup on Lower-Wage Workers, we will continue to narrow the wage gap over this decade. In line with the Workgroup’s recommendations, we have expanded the Progressive Wage Model (PWM) to cover more sectors and occupations, and tripartite partners have negotiated meaningful and sustainable wage increases in the coming years.

3. With the full implementation of the recommendations by the Tripartite Workgroup, the expanded PWM, Local Qualifying Salary requirements and the Progressive Wage Mark cover up to 9 in 10 lower-wage workers. The National Wages Council, in its annual guidelines, also recommends higher wage growth for lower-wage workers to narrow the wage gap between lower-wage workers and the median wage worker. With these efforts, we expect the wages of the 20th percentile worker to continue to increase in the lead up to 2030, at a rate faster than that of the median earner.

FOOTNOTE

  1. Source: Comprehensive Labour Force Survey, Manpower Research & Statistics Department, MOM. Based on gross monthly income from employment (including employer CPF) of full-time employed residents.