Under The Angsana Tree: 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.

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Family of four needs $6,426 a month for basic standard of living in S'pore, says study

The average wage per working parent needed to meet the basic standards of living is $2,906 per month. PHOTO: ST FILE

A family of four, with parents, a pre-teen and a teenager, needs at least $6,426 a month to afford a basic standard of living, a study on household budgets has found.

A family of two, with a single parent and a toddler or pre-schooler, meanwhile, needs $3,218 a month. But a substantial and concerning proportion of working households in Singapore - about 30 per cent - do not earn enough to meet these needs.

The study was done by National University of Singapore Lee Kuan Yew School of Public Policy (LKYSPP) and Nanyang Technological University (NTU). Its findings were released in the report Minimum Income Standards For Households In Singapore (2021), and were disputed by the Ministry of Finance (MOF) in a statement on Friday (Oct 8).

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Parents with 2 children need to earn about S$5,800 to $6,400 monthly for basic standard of living: Study

The Ministry of Finance has criticised the study, done by the Lee Kuan Yew School of Public Policy

A study by a team of researchers has suggested that for households to reach the incomes they need for a basic standard of living, working parents with two children aged two to 12 will need to each earn $2,906 a month.

The study, titled What People Need in Singapore: A Household Budgets Study, also deduced that married couples with two children aged seven to 18 will need at least S$6,426 a month to meet their household’s basic needs. For a single parent with a young child aged two to six, they will need at least S$3,218 a month to meet theirs.

The study was done by the Lee Kuan Yew School of Public Policy (LKYSPP) at the National University of Singapore (NUS), Associate Professor Teo You Yenn, part of the six-person research team, said that the study defined a basic standard of living as having food, clothing and housing but also more than just these.

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Report on minimum income standards not an accurate reflection of basic needs: Finance Ministry

The amount of government subsidies and financial support reflected in the report are what the median earner - not low-income families - receives. PHOTO: ST FILE

The Ministry of Finance (MOF) has flagged issues with a report by several academics on minimum income standards for households, saying those reading it should bear in mind the limitations of the approach researchers used.

"The conclusions may not be an accurate reflection of basic needs largely due to assumptions used," the ministry said in a statement on Friday (Oct 8). It pointed out that the methodology used to arrive at the Minimum Income Standard (MIS) is highly dependent on group dynamics and the profile of the participants. "With most participants having post-secondary education and 15 per cent living in private properties, the findings expressed may not be reflective of the circumstances of the lower-income families," MOF added.

The study on household budgets, by a group of researchers from the National University of Singapore's Lee Kuan Yew School of Public Policy (LKYSPP) and Nanyang Technological University (NTU), found that a family of four, with parents, a pre-teen and a teenager, needs at least $6,426 a month to afford a basic standard of living. But a substantial and concerning proportion of working households in Singapore - about 30 per cent - do not earn enough to meet these needs, it noted.

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52,000 Singaporeans earn less than S$1,300 a month

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.

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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.”

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Elderly in Singapore need S$1,379 a month

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.

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Singapore’s Elderly Working Poor

Video of elderly Singaporean

A video of an elderly Singaporean, who appears to have difficulty walking, clearing tables at a food court is going viral online. The video, which was published on social media last week by Facebook user Melvin Tan, has already accumulated over 270,000 views.

In the video, an elderly man can be seen moving slowly and shuffling forward while he pushes a tray that holds dirty dishes. In the crowded food court, he can be seen approaching a table and clearing a coconut drink that a patron left behind. Sharing that the video shows “the elderly in Singapore working hard,” Mr Tan indicated that he felt emotional at seeing the senior citizen doing such work in his twilight years.

Netizens responding to the post were also heartbroken and said that it is devastating to see older Singaporeans having to work so hard instead of being able to rest and retire.

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