Nominal Gross Monthly Wage of Bottom Tenth Percentile and Coverage Under Progressive Wage Model and Occupational Progressive Wages Scheme
Ministry of ManpowerSpeakers
Summary
This question concerns the inquiry by Mr Desmond Choo regarding the nominal gross monthly wage of the bottom tenth percentile (P10) of resident full-time income earners and their coverage under the Progressive Wage Model (PWM). Minister Dr Tan See Leng stated that the P10 income reached $1,800 in 2023, and that nine in 10 lower-wage workers benefit from the PWM, Local Qualifying Salary (LQS), and Progressive Wage Mark. He clarified that among workers earning at or below $1,800, five in 10 are covered by the PWM and three in 10 are covered by the LQS. Minister Dr Tan See Leng noted that the LQS was raised to $1,600 in July 2024, ensuring wage increases for those previously earning below that amount. Additionally, the maximum Workfare Income Supplement payment will increase to $4,900 per year from 2025 to provide further support for lower-income workers.
Transcript
53 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.
Dr Tan See Leng: 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.