DID SINGAPOREAN SALARIES REALLY INCREASE BY 3.9% LAST YEAR?

Real salaries increased 3.9%

According to the Straits Times news report “Real salaries in Singapore up by 3.9% last year as inflation dips” (Jun 4) – “after taking inflation into account, latest official data shows that salaries rose at a faster pace to 3.9 per cent in 2014, compared with 2.9 per cent in 2013″.

 

What about real salaries (excluding employer CPF)?

However, I understand that the above statistics are for employed residents (including employer CPF contribution).

What are the statistics for Singaporean workers (excluding employer CPF contribution)?

Why is it that the Report on Wage Practices released on 4 June 2015 does not have statistics on salaries (excluding employer CPF contribution) anymore?

 

Real salaries increased 0.8%?

However, according to the MOM’s Income Summary Table released on the same day (June 4) – the Median Gross Monthly Income From Work (Including Employer CPF Contributions) of Full-Time Employed Residents increased by only 1.8 per cent, from $3,705 in 2013 to $3,770 in 2014. After adjusting for inflation of one per cent – the real increase was only 0.8 per cent.

 

Real salaries (excluding employer CPF) negative increase?

What is the figure for “excluding employer CPF contribution”? – Negative real increase again like the -0.3 per cent calculated from the MOM’s Labour Force 2014 report (preliminary) released on 30 January.

 

Why change from gross median salary to total wage change?

In this connection, it may be interesting to note that the real salaries increase of 3.9 per cent cited in the news report and the Report on Wage Practices is on the Total Wage Change Including Employer CPF Contributions (%) – and not the gross median salary including employer CPF.

As I understand that the narrative emphasis on wage reports has always been on the gross median salary – why the sudden apparent switch to total wage change now?

Of course the real total wage change of 3.9 per cent looks much better than the real gross median salary increase of just 0.8 per cent.

 

NWC recommends $60 minimum increase for the 3rd year for “below $1,000″ workers

“The National Wages Council (NWC) continued to give focus to low-wage workers with a third round of quantitative wage recommendations for those earning a basic monthly salary of up to $1,000 in its 2014/15 guidelines, following the previous two rounds. The recommended minimum built-in wage increase was $60 in 2014, similar to 2013, but higher than the $50 in 2012.

 

But only 31% of employers gave the increase

The proportion of establishments that gave increments equal to or more than the NWC’s recommended built-in wage increase was 31% in 2014, compared to 57% in 2013 and 28% in 2012.

 

41% of employers did not increase at all

… 41% of private establishments that did not grant (any) wage increases (at all)”.

 

More employers cut pay & less gave pay increase

The percentage of establishments that cut employees’ wages increased from 3.8 to 3.9 per cent, from 2013 to 2014. For the percentage that gave wage increases – it decreased from 6.4 to 6.0 per cent from 2013 to 2014.

 

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