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Business Times
28-05-2025
- Business
- Business Times
Singapore's real wages rise at faster rate of 3.2% in 2024; more firms give salary bumps: MOM
[SINGAPORE] Real wage growth in Singapore rose at a faster pace of 3.2 per cent in 2024 as nominal wage growth outpaced inflation, data from the Ministry of Manpower (MOM) showed on Wednesday (May 28). Lower headline inflation of 2.4 per cent in 2024, compared with 4.8 per cent in 2023, meant that 2024's real wage growth was higher than the 0.4 per cent recorded the year before and the highest since Covid-19, stated the ministry's latest wage practices report. This was while the proportion of firms that gave wage increases to their staff rose in 2024, even though the proportion of profitable businesses declined slightly from the year before. Nominal wages of full-time resident employees who had been with the same employer for at least a year increased 5.6 per cent. This figure included employer Central Provident Fund (CPF) contributions. This was a nudge higher than the 5.2 per cent nominal wage growth seen in 2023. 'Looking ahead, we expect wage growth this year to moderate,' said Ang Boon Heng, director of MOM's manpower research and statistics department, in a briefing for reporters. 'It's not going to be news because we know that times are uncertain.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Even though there has been a slight improvement in Singapore's growth outlook in recent weeks, due to de-escalation of US-China trade tariffs, MOM still expects wage growth to moderate in 2025, added Ang. Nominal wage growth is expected to moderate, especially in trade-reliant sectors such as manufacturing and wholesale trade, the ministry said in its annual report. Still, the moderation in wage growth is not expected to be significant, noted Ang, given that the labour market remains tight, as well as with strong labour demand in certain sectors, such as consulting, and health and social services. The ministry's forward-looking survey, conducted in the first quarter of 2025, showed that a smaller proportion of firms plan to give wage increases to their employees. Rank-and-file employees (5.8 per cent) and junior management (5.6 per cent) had slightly higher wage increases than senior management (5.1 per cent), partly reflecting efforts to offset cost-of-living pressures, said MOM. It added that policy factors, such as increases in the local qualifying salary and the implementation of Progressive Wage Model initiatives, contributed to the uplift in wages of lower-income employees. 'The increase in wages of lower-income employees did not have a significant impact on cost competitiveness, as they only form a very small component of total business costs,' said MOM. Sectoral wages In 2024, all industries continued to experience wage growth, though the rate of increase across sectors varied, MOM said. The financial services (6.7 per cent) and community, social and personal services (5.7 per cent) sectors had above-average wage gains as demand for skilled workers continued. Meanwhile, the administrative and support services had the highest wage growth of 8.7 per cent, reflecting the impact of the Progressive Wage Model, said MOM. In contrast, the food and beverage (4.8 per cent), wholesale trade (4.2 per cent) and manufacturing (5.1 per cent) sectors had below-average wage growth. Wage increases in the latter two sectors are expected to moderate this year given ongoing geopolitical and trade tensions. In 2024, the proportion of firms that raised their staff's salaries rose to 78.3 per cent, from 65.6 per cent the year prior. MOM noted, however, that this was due to firms' past organisational performance, rather than forward-looking confidence. Meanwhile, the proportion of businesses that reported they were profitable dipped to 80.8 per cent, from 82.1 per cent previously. Profitability varied across industries, with the real estate services and wholesale trade sectors seeing fewer profitable businesses. In contrast, manufacturing had an increase in profitable firms, but this is expected to decline in the coming year due to global trade tensions. Firms that cut wages remained in the minority at 3.2 per cent, while 18.5 per cent of businesses left salaries unchanged. Flexible-wage system Over the past decade, there has been a gradual decline in the proportion of companies which has implemented at least one flexible-wage system, said MOM. This refers to either the monthly variable component and the annual variable component, or both. Only 8.5 per cent of firms have adopted both systems, while the prevalence of variable wages in the private sector firms was also low at 14.9 per cent. 'Establishments that have implemented at least one flexible-wage system component were more likely to have given wage increases by using the variable wage components,' said MOM. A majority of companies adopt the annual variable component, the ministry noted. Firms are also not adopting the monthly variable component, either due to a lack of awareness or because other firms in their industries do not have a practice of adopting it in their wage structure.
Straits Times
22-05-2025
- Business
- Straits Times
Over 1,000 job seekers can start earning points to qualify for payouts
More than 1,000 applicants have already been approved, noted WSG, without revealing the total number of applications. PHOTO: LIANHE ZAOBAO FILE Over 1,000 job seekers can start earning points to qualify for payouts SINGAPORE – There has been a solid take-up rate for the SkillsFuture Jobseeker Support (JS) scheme launched on April 15. More than 1,000 applicants have already been approved, noted Workforce Singapore (WSG), without revealing the total number of applications. The resident unemployment rate came in at 2.9 per cent in the first quarter, up slightly from 2.8 per cent in December 2024. Successful applicants in the scheme can receive up to $1,500 in the first month, $1,250 in the second, $1,000 in the third and then $750 a month for the remaining three months. The payouts are capped at a job seeker's past average gross monthly income. So if the person earned an average of $900 a month, the monthly payout under the scheme will not exceed that amount. Applicants must earn at least 10 points a month for the first three months and five points a month for the next three months to remain in the scheme, which is open to lower- and middle-income adult Singaporeans who have lost jobs their due to retrenchment, business closure, illness or other reasons beyond their control. Points can be earned by completing some of these activities: Plan a career path using WSG's CareersFinder tool Browse or subscribe to career-related content Update resume online Attend a career coaching session or a career-related event, workshop or seminar Network with an industry professional Complete a skills and training advisory or attend the SkillsFuture Advice workshop Points for each activity differ, with those requiring more time and commitment worth more. Proper documents needed Applicants must submit documentation showing they were involuntarily unemployed by their previous company, said WSG. Job seekers from age 21 who have been unemployed for at least one month from the last day of employment can apply. They must also have been employed in Singapore for at least six months in the past 12 months, but a one-off concession is given to those who lost their jobs on or after April 1, 2024 – if they meet all other criteria and submit their applications by June 15. They must also have earned $5,000 or less a month on average for the duration of their previous employment within the last 12 months. They cannot live in a property with an annual value of more than $31,000. The annual value of a property is the estimated gross annual rent if it were to be rented out. 'This could be in the form of formal termination letters or e-mail exchanges (showing) the ending of employment was initiated by the employer,' said a WSG spokesperson. Resignation letters, payslips or a Central Provident Fund transaction history without supporting evidence of involuntary unemployment are 'insufficient' for approval. Employers are encouraged to provide valid correspondence to former employees and to respond promptly to WSG requests for clarifications when receiving applications from job seekers. Ms Syikin (not her real name), is participating in the scheme. She has been undertaking job search activities and racked up 10 points in the first month by attending career events for networking purposes and exploring job opportunities. She is now waiting for a payout of up to $1,500. Ms Dyana Nusantry Jumadi, a successful applicant who had started attending career coaching sessions with a WSG coach, has just secured a job at a built environment company. When she was retrenched in July 2024, she began to apply for a new job, but to no avail. She took on several Workforce Skills Qualifications courses to upgrade herself and was referred to NTUC's e2i's career coach by her social worker in February 2025 before applying to the JS scheme in April. While she has started completing job search activities and clocking points, she was not eligible for the payout as she had already landed a job. Join ST's Telegram channel and get the latest breaking news delivered to you.
New Paper
22-05-2025
- Business
- New Paper
Interest rate on CPF Special, MediSave and Retirement accounts remains at 4% for Q3 2025
The interest rate on the Central Provident Fund (CPF) Special, MediSave and Retirement accounts (SMRA) will remain unchanged at 4 per cent from July to September 2025. Savings in these accounts will earn the floor rate of 4 per cent a year in the third quarter, as the SMRA pegged rate remains below the floor rate, according to a joint statement by the CPF Board and Housing Board on May 22. The interest rate is pegged to the 12-month average yield of the 10-year Singapore Government Securities, plus 1 per cent. The interest rates for the Ordinary Account and for HDB housing loans remain unchanged at 2.5 per cent and 2.6 per cent, respectively. CPF members below 55 years old will continue to earn an extra 1 per cent interest on the first $60,000 of their combined account balances, capped at $20,000 for the Ordinary Account. Those aged 55 and above will continue to earn an extra 2 per cent interest on the first $30,000 of their combined balances, capped at $20,000 for the Ordinary Account, and an extra 1 per cent on the next $30,000. The extra interest earned on the Ordinary Account will go into a member's Special Account or Retirement Account, said the statement.
Straits Times
20-05-2025
- Business
- Straits Times
CPF Board begins use of sole phone number for all outbound calls to combat scams
All calls made by the CPF Board have been from the number 6227-1188 since the end of April. ST PHOTO: NG SOR LUAN CPF Board begins use of sole phone number for all outbound calls to combat scams SINGAPORE – In an effort to combat government official impersonation scams, the CPF Board has started using a single phone number for all outbound calls. All calls made by the agency have been from the number 6227-1188 since the end of April, said a statement from the board on May 20 . 'This consolidation to a single number aims to help members easily verify the authenticity of calls from the CPF Board,' said the statement. The number is listed on the agency's website and whitelisted in the ScamShield application. 'This move builds upon CPF Board's earlier efforts in December 2024, where outbound calls were streamlined to two dedicated numbers (6227-1188 and 6202-3388) to enhance security,' the board said. Those who miss a call from CPF Board will receive a SMS or an e-mail from an address that ends with @ or @ with callback details. The agency also said that from May 2025 , Central Provident Fund members making an online nomination must perform enhanced authentication with biometrics, as an additional safeguard. 'The CPF Board will continue to collaborate with banks and other government agencies to monitor the evolving scams landscape, and review our safeguards to strike a good balance between convenience and security,' said the statement. It added that it would never ask members of the public to transfer money, disclose bank login details or install mobile apps from unofficial app stores over a phone call. CPF members who suspect they have been scammed should freeze their bank accounts, reset their Singpass password, activate the CPF Withdrawal Lock to disable online withdrawals immediately, and inform the police and CPF Board. Join ST's WhatsApp Channel and get the latest news and must-reads.
Independent Singapore
04-05-2025
- Business
- Independent Singapore
‘Shouldn't a company have the courtesy to inform staff before salary delays?' — Employee upset his employer didn't give him a heads-up
SINGAPORE: An employee has voiced his frustration online after his employer failed to inform him and the other staff members of a salary delay. In a post on the r/askSingapore forum, the employee, who works at a local small- and medium-sized enterprise (SME), shared that their salaries are usually credited by the last working day of the month. However, last month, the expected payday came and went—without a single word from management or HR and, more worryingly, without any salaries being paid. Trying to get clarity on the situation, the employee reached out to the HR department. Unfortunately, the response he received was far from reassuring. 'The response was vague and unhelpful. Frankly, it felt like they were just going through the motions,' he wrote. This incident prompted the employee to question why some companies neglect such a basic responsibility. 'If there's going to be a delay, shouldn't the company at least have the basic courtesy to inform staff in advance?' he asked. 'We're expected to deliver our work on time—shouldn't the same standard apply when it comes to paying us the salary?' 'Failure to make payroll is a red flag…' The post resonated with other Redditors, some of whom shared similar experiences working in SMEs where transparency is often lacking. Others chimed in to say that such practices are unprofessional and also a potential violation of employment laws. One Redditor shared, 'It happened to me for four months in a row—both monthly salary and CPF (Central Provident Fund) contribution. Then, when I next met with the boss, I was told that my services were no longer needed. A company that doesn't pay you on time is NOT the company you want to work for. You deserve better.' Another recalled, 'I've worked for a local brand that always paid us late; a few times it was later by 14 days. When an ex-colleague who was leaving gave them this feedback, the boss told the rest, 'If you're not happy about it, you can quit.' Additionally, some Redditors speculated that the delays could signal financial trouble within the company. One commented, 'Failure to make payroll is a red flag. Usually, it is more prevalent in smaller companies. Prepare your resume. Not saying it'll happen, but you need to look out for yourself.' Another added, 'I think the more serious matter is the company going bankrupt. It happened to me once, but it was a CPF contribution. Eventually, the company closed down.' Delayed salary Under the Employment Act, employers are legally obligated to pay their employees at least once a month, although they are allowed to choose shorter payment intervals if they prefer. The Ministry of Manpower (MoM) further specifies that salaries must be paid within seven days after the end of the salary period. Employees who are entitled to overtime pay should be paid within 14 days following the end of the salary period. If employees experience any delays in receiving their salary or if their pay is missing entirely, MoM strongly recommends that they first approach their employer to understand the reason behind the delay. If the employer fails to resolve the payment delay or if the employee continues to face payment issues, they can file a formal claim with the Tripartite Alliance for Dispute Management (TADM) or seek assistance from their union. Read also: Maid says her employer did not give her Labour Day off, even though her contract includes PH entitlements
