Singapore’s lower-wage employees see income growth rebound

Singapore’s median nominal income rose to S$5,500 in 2024, narrowing the income gap as lower-wage earners saw faster growth.

Median and lower-wage earners in Singapore experienced a rebound in real income growth in 2024, following declines caused by high inflations in 2023. According to preliminary data from the Ministry of Manpower (MOM), real incomes grew by 3.4% for median earners and 4.6% for those in the bottom 20% income bracket. This marks a recovery from 2023, when inflation pushed real income growth to minus 2.2% for median earners and minus 3% for lower-wage employees.

Nominal incomes also saw significant increases. Median nominal income rose to S$5,500 (US$4,096) per month in 2024, a 5.8% increase from 2023, while those at the 20th percentile earned S$3,026 (US$2,253) per month, up 7.1%. These figures include employer contributions to the Central Provident Fund (CPF). MOM highlighted that the income gap between these groups has narrowed further, with 20th-percentile earners now earning 55% of the median, compared to 5.2% a decade ago. This improvement reflects inclusive income growth supported by initiatives like the Progressive Wage Model, which continues to boost wages for lower-income employees.

READ MORE: Flexible work, top priority for employees in Singapore

In a tight labour market, nearly 60% of full-time resident employees aged 25 to 64 who switched industries earned at least 5% more in real terms, often transitioning to higher-skilled roles in sectors like financial services and information technology. However, 20% saw their incomes decline by at least 5%, with some prioritising work-life balance or undertaking training programmes.

Labour force participation declined to 68.2% in 2024, attributed to an ageing population. MOM warned that the resident old-age support ratio, which has halved since 2014, could further strain workforce sustainability. Including foreign employees, this ratio rises from 3.5 to 5, underscoring the need for continued openness to foreign talent to support Singapore’s ageing population and economic resilience, reported The Straits Times.

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