Support for Lower- and Middle-income Workers Facing Stagnant Wages to Cope with Inflation

Parliamentary Question by Mr Gan Thiam Poh: 

To ask the Deputy Prime Minister and Minister for Finance what are the further sustainable measures and support that can be given to lower and middle income workers who face stagnant wages to cope with inflation in the long run.

Parliamentary Reply by Deputy Prime Minister, and Minister for Finance Mr Lawrence Wong:

The most effective way to help lower- and middle-income workers cope with inflation is to enable them to increase their real wages over time.  The Government will strive to achieve this by growing the economy, creating good jobs, and supporting Singaporeans to take on these jobs through continuing education and training. 

We have made continuing education and training more affordable for workers through significant course fee subsidies and the SkillsFuture Credit.  We are getting companies to be more involved in SkillsFuture to ensure that the training leads to industry-relevant skills. Initiatives like the Company Training Committees, led by the NTUC, as well as the Jobs-Skills Integrators, announced in this year’s Budget, will also help to achieve more effective training, job placement, and employment outcomes. 

In addition, we will press on with efforts to uplift the wages of lower-income workers. We recently enhanced Workfare to cover more lower-wage workers and increase the support they receive. We have also expanded the Progressive Wage Model, and the Government co-shares the cost of wage increases with employers through the Progressive Wage Credit Scheme. Today, up to nine in 10 lower-wage workers are covered by Progressive Wage measures.

These moves have helped our workers increase their earnings. From 2017 to 2022, real median income grew at 1.8% per annum[1]. Real income for lower-wage workers grew at a higher 2.9% per annum[2]. We are not just supporting the broad middle, but also uplifting the lower-income groups and reducing our wage gaps.

Through the Forward Singapore exercise, the Government is considering further moves to strengthen our support for workers so that they have the skills to take on better jobs and earn higher wages over time.

[1] Pertains to gross monthly income from work (including employer CPF) of full-time employed residents at the median, deflated by Consumer Price Index for all items at 2019 prices (2019=100). Source: Comprehensive Labour Force Survey, MRSD, MOM.

[2] Pertains to gross monthly income from work (including employer CPF) of full-time employed residents at the 20th percentile, deflated by Consumer Price Index for all items at 2019 prices (2019=100). Source: Comprehensive Labour Force Survey, MRSD, MOM.