MOM notes more efforts to close wage gap between lower-wage and median wage workers in Singapore

Data from 2013 to 2023 showed that the real wages of the 20th percentile workers increased cumulatively by 30%, faster than the growth of 50th percentile workers at 22%.

Back in October 2024, Member of Parliament in Singapore, He Ting Ru, posed questions regarding the current wage convergence targets for the 20^th percentile of income earners and the expected path of convergence for these earners between 2023 and 2030.

In response, the Ministry of Manpower (MOM) shared that from 2013 to 2023, the real wages of the 20^th percentile workers increased cumulatively by 30%. This result is faster than the growth of median (50^th percentile) workers at 22%. MOM is making efforts to continue narrowing the wage gap over the next decade as recommended by the 2021 Tripartite Workgroup on Lower-wage Workers. Such efforts include the expansion of the Progressive Wage Model (PWM) that is done in line with the Workgroup’s recommendations to cover more sectors and occupations. The tripartite partners had also negotiated meaningful and sustainable wage increases in the coming years.

Full implementation of the recommendations by the Tripartite Workgroup (the expanded PWM, Local Qualifying Salary requirements and Progressive Wage Mark), can cover up to nine in 10 lower-wage workers. The annual guidelines set by the National Wages Council also recommends higher wage growth for lower-wage workers to narrow the wage gap between lower-wage and median wage workers.

With all these efforts, wages of the 20^th percentile worker are expected to continue its rise at a faster rate than median earners up till 2030.

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