Debated in Parliament on 6 Aug 2024.
Mr Desmond Choo asked 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.
Currently, up to nine 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. 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
Among full-time resident employees earning at or below $1,800 (that is, B10 workers), about five in 10 are covered by PWM. Another three 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.
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.
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