6/1/2018 12:42:04 PM
|written By : Team India Se|
The National Wages Council recommended higher basic pay increases for more low-wage workers in Singapore this year as the economy grew by 3.6 per cent last year up from 2.4 per cent in 2016.
Those earning a basic salary of up to $1,300 a month should get built-in increments of between S$50 and S$70, the council said, issuing its annual wage guidelines on May 31.
This will cover 24,000 more workers than in 2017, when the council recommended that those earning up to S$1,200 should get pay hikes of S$45 to S$60.
In all, some 150,000 full-time workers will come under the new basic salary threshold, noted the Straits Times.
The council said in its recommendations: “The proportion of full-time resident employees earning a basic monthly wage of up to S$1,200 is estimated to have decreased from 8.1% in 2016 to 7.7% in 2017. At the same time, the proportion of full-time resident employees earning a basic monthly wage of up to S$1,100 and S$1,000 fell to 5.3% and 4.2% respectively. Building on the progress made, the NWC believes it is useful to continue to provide quantitative guidelines for low-wage workers, and to further raise the basic wage threshold from S$1,200 to S$1,300.”
The median gross monthly income from work including employer CPF contributions of full-time residents in 2017 was S$4,232, according to a Ministry of Manpower report issued on January 26.
The council also proposed for the first time that companies which made productivity gains last year should give their low-wage workers a special bonus of between S$300 and S$600. This could be paid out in a lump sum or over several payments, it said.
The council also called on employers to give those earning above S$1,300 a raise and/or one-off lump sum based on their skills and productivity.
The council’s annual wage guidelines are not legally binding but have benefited a majority of low-wage workers in the past, reported the Straits Times.
Last year, almost two of three private companies that hire low-wage workers gave them a pay rise in accordance with the council's recommendations, based on a survey by the Ministry of Manpower released on May 30. This benefited 68 per cent of all low-wage employees who had worked for at least one year.
Singapore's biggest employer, the civil service, has accepted the new guidelines and will implement them on July 1.