Pay of lower-wage workers rises faster than median amid moves to uplift them

Most of growth took place in last 3 years as progressive wage efforts expand

- Sue-Ann Tan

The salaries of lower-wage workers here have risen at a quicker pace compared with those of the workforce as a whole, signalling recent measures to uplift this segment could have brought about tangible results.

Lower-wage workers may include cleaners, security officers and retail assistants.

A "big part of this growth" took place over the last three years, in line with the expansion of the Progressive Wage Model (PWM) to cover more sectors, said Senior Minister of State for Manpower Zaqy Mohamad in Parliament on March 7.

Real wages at the 20th percentile rose cumulatively by 5.9 per cent from 2019 to 2024, higher than those of median workers at 3.6 per cent.

This means that even though the cost of living rose, the wages of lower-wage workers rose even more, he noted.

Mr Zaqy added during the debate on the Manpower Ministry's budget that the wage gap between lower-wage workers and median workers is also narrowing, even while median wages continue to rise.

He was responding to Mr Melvin Yong (Radin Mas) who asked about the impact of progressive wage efforts.

The PWM was first rolled out in 2014 for the cleaning sector, followed by security and landscaping jobs. In 2021, this was expanded to the retail, food services and waste management sectors.

Occupational progressive wages were also announced for administrators and drivers. For workers not covered by the PWM, employers are required to pay all their local employees at least the local qualifying salary (LQS) if they hire foreign manpower.

The PWM - including the LQS and Progressive Wage Mark accreditation scheme for companies that pay their workers progressive wages - now benefits up to nine in 10 full-time lower-wage workers, Mr Zaqy said.

To provide lower-wage workers with additional support, the Workfare Income Supplement scheme has been enhanced. From January 2025, the qualifying monthly income cap went up from $2,500 to $3,000.