Under The Angsana Tree: 52,000 Singaporeans earn less than S$1,300 a month

Update 9 Oct 2021: S$2,906 a ‘reasonable’ starting point for a living wage in Singapore

The “reasonable starting point” for a living wage in Singapore is S$2,906 a month, according to a study by the Lee Kuan Yew School of Public Policy. This figure is based on the average budget for a couple with two children, assuming both parents are employed full-time. The figure is also adjusted for taxes and all universal and major means-tested benefits.

“The median work income among all workers in 2020 exceeded this amount by 50 per cent, but the current PWM (Progressive Wage Model) wages fall significantly below,” said the school in a media release on Friday (Oct 8). The Progressive Wage Model aims to lift the salaries of workers by various sectors through upgrading their skills and improving productivity.

The study found that the costs of education and care “dominated” the budgets for children’s needs. “While some costs associated with children decline with age, others increase sharply. As current measures supporting education and care taper off for older children, parents are likely to face greater financial strain as their children grow up.” Researchers also found that current public housing policies "effectively double” housing costs for single parents who have never married, compared to partnered, widowed or divorced parents.

read more

‘Not meaningful’ to reveal how many Singaporeans take home S$1,300 monthly after deductions: Zaqy Mohamad

The Workers' Party recently argued in Parliament for a minimum wage of S$1,300 to be implemented in Singapore, but the Government rebutted that this could lead to higher unemployment as businesses here may face unsustainable higher costs

The issue of a minimum wage came up again in Parliament on Tuesday (Nov 3), this time with Minister of State for Manpower Zaqy Mohamad and Workers’ Party Member of Parliament Jamus Lim crossing swords over the amount of S$1,300.

Dr Lim, an MP for Sengkang Group Representation Constituency (GRC), had asked how many Singaporeans earn S$1,300 or less a month on a take-home basis, excluding employer and employee central provident fund (CPF) contributions and other deductions of income.

In response, Mr Zaqy said it was not meaningful or accurate to provide the number, as payouts from the CPF is also part of one’s income.

read more

Zaqy Mohamad to WP's Jamus Lim in discussion on minimum wage

Senior Minister of State for Manpower Zaqy Mohamad and Workers' Party Member of Parliament Associate Professor Jamus Lim debated the latter's party's minimum wage definition on Tuesday (Nov 3)

Around 52,000 Singaporeans earn less than S$1,300 monthly inclusive of Workfare cash supplements and after deducting contributions to the Central Provident Fund (CPF), said Senior Minister of State for Manpower Zaqy Mohamad in Parliament on Tuesday (Nov 3).

The figure includes 30,000 full-time Singaporean employees working in areas such as food services, cleaning and retail, and 22,000 self-employed workers, said Mr Zaqy in response to opposition Member of Parliament (MP) Jamus Lim, who had asked how many Singaporeans made less than S$1,300 a month.

Four in five of these Singaporeans have up to post-secondary qualifications and more than a third of them are aged 50 and above, reflecting that low-wage workers tend to be older and have a lower education profile compared to the current generation, said Mr Zaqy.

read more

Unions say proposed S$1,300 minimum wage not workable, reject WP MP's ‘folksy wisdom’ remark

The Workers' Party's Assoc Prof Jamus Lim sparked controversy when he referred in Parliament to the views of union leaders as "folksy wisdom and beliefs"

Some union leaders have hit back at the Workers’ Party's (WP) suggestion of setting a universal minimum wage of S$1,300 a month, pointing out that the lowest salaries in some sectors are already above that level.

They also said that remarks by WP’s Associate Professor Jamus Lim in Parliament last week, when he likened the opinions of union leaders to “folksy wisdoms and beliefs”, were uncalled for and unwarranted.

Union leaders with whom TODAY spoke pointed out that leaders in the National Trades Union Congress (NTUC) use data and statistics when formulating policies, along with their knowledge of ground sentiments.

read more

Jamus Lim clarifies “folksy wisdom” comment

In a forum letter to the Straits Times on Monday (Oct 19), Jamus Lim clarifies his comments referring to the thinking of labour union leaders as “folksy wisdom and beliefs”. After much backlash, in a letter published on Monday (Oct 19), Professor Lim wrote that “Disagreement doesn’t diminish unionists’ work”.

He says his “statement was about the beliefs held by some union leaders on minimum wage, as cited by National Trades Union Congress deputy secretary-general Koh Poh Koon”. “While there is a role for opinion based on personal experience, I maintain that good policy should be formulated on the basis of data-driven empirical evidence. It is important not to conflate the two – that is, using an opinion to refute a study”, Prof Lim wrote.

The MP for Sengkang GRC (Anchorvale) notes that his “disagreement in this instance in no way diminishes my regard for unionists in all these other ways, nor does it take away from my appreciation of their work in the past”.

read more

Jamus Lim says don’t rely on folksy wisdom, the stat says “only” 32,000 workers, so what are we waiting for?

Leaders of individual trade unions in Singapore seldom make noises in public. Usually, their umbrella NTUC big brother, one leg of the tripartite system here, will do all the talking for them. Until Associate Professor Jamus Lim spoke on Thursday October 16 about the wisdom of not relying on the folksy wisdom and beliefs of union leaders. At least two of these allegedly folksy leaders have sprung up from the woodwork to disagree with the Workers’ Party Sengkang GRC MP. Good for them. We need more engagement for better dialogue on every issue, if nothing else but to remind everyone that times have changed and attitudes should too.

In the Parliamentary debate on basic wage, Dr Lim said:

“With all due respect, as much as it will be lovely to always rely on folksy wisdom and beliefs by labour union leaders, at the same time it’s important to realise that when we talk about studies that show that the minimum wage does not lead to any appreciable increase in unemployment, this is based on careful consideration and not just beliefs.
“It’s worth reminding ourselves that there was a time in the 16th century when people believed that the sun revolved around the earth. But that belief is not in fact the same as evidence.”
Evidence from around the world demonstrates that a minimum wage does not cause widespread unemployment, as long as it is not set too high, said Dr Lim.

Two union leaders fired back.

read more

PAP, WP MPs debate minimum wage; 1.7% of local workforce earn below S$1,300 a month, says Koh Poh Koon

People's Action Party Member of Parliament Koh Poh Koon (left) debating the issue of a minimum wage with Workers' Party chief Pritam Singh (right) in Parliament on Oct 15, 2020

The Workers' Party's (WP) proposal for a minimum wage could leave businesses and workers worse off and also become a politicised issue, said National Trades Union Congress’ deputy secretary-general Koh Poh Koon in Parliament on Thursday (Oct 15).

The issue of a minimum wage has been in the spotlight since the General Election in July.

On Monday, WP chief and Leader of the Opposition Pritam Singh called for a universal minimum wage with S$1,300 as a base for Singaporean workers, saying in a Facebook post that this is not just a "moral imperative" but "an act of national solidarity".

read more

How can anyone survive on less than $1,300 in Singapore?

Dr Ho Ting Fei wrote a letter to ST Forum which was published today asking how can anyone survive on less that $1,300 in today’s Singapore (‘Forum: How can anyone survive on less than $1,300?‘, 21 Oct). With regard to the current debate between PAP and WP MPs on setting a minimum wage in Singapore, Dr Ho said, “The priority should not be to defend the statistics and policies on why there should not be a minimum wage level.” “Instead, one should first consider how any one individual or family can survive on less than $1,300 a month when the cost of living in Singapore is notoriously high,” she added.

She shared that there are currently 32,000 or so full-time workers who urgently need help. They should not be tossed around as statistics whenever the topic of minimum wage is raised, she opined. “$1,300 a month would not solve all their daily needs but it is a good start to give them some hope,” she said. “If we do not lift these 32,000 workers out of the pit of low wages, it is futile to talk about upgrading their skills. If we cannot help them put food on the dinner table or provide for their basic needs, it is futile to talk about increasing productivity.”

She asked the government to be “practical and realistic”. “These are our fellow Singaporeans who are poor and desperate. These are people we should not ignore regardless of the number,” she added. “The question is whether we give them the dignity and respect they deserve.”

read more

Elderly in Singapore need S$1,379 a month
Elderly in Singapore need S$1,379 a month for basic needs: Study

An older person above 65 years old needs S$1,379 a month to meet his or her basic needs, according to a team of researchers from the Lee Kuan Yew School of Public Policy (LKYPP).

This precise figure came from a study by the team led by Assistant Professor Ng Kok Hoe from LKYPP, National University of Singapore (NUS). They revealed their findings in a media release on Wednesday (May 22).

The household budgets necessary to meet basic needs were S$1,379 per month for single elderly households, S$2,351 per month for elderly couples, and S$1,721 per month for a person aged 55 to 64 years old, the study said.

read more