Support for Lower- and Middle-income Workers Facing Stagnant Wages to Cope with Inflation
Ministry of FinanceSpeakers
Summary
This question concerns Mr Gan Thiam Poh’s inquiry regarding sustainable support for lower- and middle-income workers facing stagnant wages amidst inflation. Deputy Prime Minister and Minister for Finance Lawrence Wong responded that the Government prioritizes increasing real wages through economic growth, job creation, and training subsidies like SkillsFuture. He detailed the expansion of the Progressive Wage Model and Workfare, highlighting that the Progressive Wage Credit Scheme helps employers co-share wage increase costs for workers. Data from 2017 to 2022 shows real median income grew by 1.8% annually, while real income for lower-wage workers rose by 2.9% to reduce wage gaps. The Government is also exploring further support measures through the Forward Singapore exercise to help workers attain better jobs and higher wages.
Transcript
96 Mr Gan Thiam Poh asked 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.
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 National Trades Union Congress, 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 annum1. Real income for lower-wage workers grew at a higher 2.9% per annum2. 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.