50% of Singaporeans had less than $18 net pay increase?

$660m wage credit payout to employers

I refer to the article “$660m in payouts for employers by end of March ” (Straits Times, Mar 18).

It states that “More than 85,000 employers will receive a total of about $660 million in Wage Credit Scheme (WCS) payouts by the end of this month

Under the extended WCS, the Government co-funds 20 per cent of wage increases given to Singaporean employees earning a gross monthly wage of $4,000 and below, over 2015 to 2017.”

No mention of the no. of eligible workers?

When I read the above – the first “curious” thought that came to my mind was – why no mention of the number of workers who were eligible for the wage credit?

Since there is no breakdown of the workforce statistics into Singaporeans and permanent residents (PRs), and only Singaporeans can qualify for the wage credit – I estimate that the number earning up to $4000 to be about 900,000 (since the median gross income was $3,823).

Since the 20 per cent co-funding wage credit is computed from the last two years’ wage increase of at least $50 a year – I estimate the average wage increase per eligible worker for 2016 (assuming three quarters of the workers met the criteria) to be about $200 a month ($660 million divided by 0.4 (co-fund 20% for 2 years’ wage increases) divided by 675,000 (75% of workers).

To put this in perspective – $200 is a five per cent wage increase for a worker earning $4,000.

0.7% wage increase last year

Actually, my curiosity was aroused because I remember reading in the news that the median gross income of full-time employed Singaporeans only increased by 0.7 per cent to $3,823 last year.

This works out to a wage increase of about $27 monthly ($3,823 divided by 1.007 – $3,823).

Since this is including employer CPF contribution – the increase excluding employer CPF contribution is about $23 ($27 divided by 1.17).

$18 increase in take-home pay?

If we deduct the typical 20 per cent employee’s CPF contribution – the increase in take-home pay (disposable income) is only about $18 ($23 less 20%).

50% of S’poreans had less than $18 pay increase?

So, since this is the median – does it mean that about half of the full-time employed Singaporeans had a wage increase (take-home pay) of only $18 or less?

Total wage increase of all the workers earning up to $4,000 – $250m?

Hence, I estimate the total wage increase for workers earning less than $4,000 to be about $250 million ($23 x 12 months x 900,000 workers).

Now, let’s get back to the wage credit.

20% co-fund wage increase is $660m, but all workers’ wage increase $250m?

Here’s where it may be puzzling. If the Government paid $660 million to co-fund 20 per cent of the wage increase for those workers earning up to $4,000 who had at least a $50 wage increase – why is the estimated total wage increase for all the full-time employed Singaporeans earning up to $4,000, only about $250 million?

Why? – low or no wage increase or cut, unemployed, self-employed?

Well, some possible reasons may be that a significant number may have had a wage increase of less than $50, no wage increase, a wage cut, became unemployed (estimated to be over 100,000 Singaporeans), free-lance, self-employed, etc.

 

Leong Sze Hian

 

 

Sponsored Content

4 Responses to “50% of Singaporeans had less than $18 net pay increase?”

  • Sperm:

    The 70% deserve this pay increase. This is their country.

    GD Star Rating
    loading...
  • I hope pap won 99%:

    Why i hope for 99%?

    All of them gonna suffer more than ever.
    The more the merrier!

    Hahahahaaaa!

    GD Star Rating
    loading...
  • opposition dude:

    Well I had a zero percent increase in my pay in 2015 and 2016. I don’t expect anything different this year or next either.

    GD Star Rating
    loading...
  • RDB:

    And waiting for the lift, when I mentioned to a neighbour of the now become odd jobs working class types about PAP’s 30% water tariff increase still need to add in 1. Water conservation tax & 2. Water consumption tax AND then ADD 7% GST. She simply replied “It is like that” in simplistic surrender uninterested since she still has a job & is surviving! Oh Blimey! The negative effects of our high level of Fluoride in our tap water was expounded by SDP’s lady speaker at Hong Lim Park lately.

    GD Star Rating
    loading...
Member Services
Members LoginSelf-ClassifiedsSelf-Support
Sponsored Advertisement





Search On TR Emeritus
Sponsored Advertisement



Most Recent Comments
  • oxygen: SKELETONS ARE FALLING unending everywhere including from even the most unlikely seemingly...
  • Amos humiliate L*L and PAP: What is there to think about? LKY prefers his house demolished. This is very clear....
  • LKY was right: “If our children are unable to demolish the House as a result of any changes in the laws, rules or...
  • N.Jungne: He should tell Looney to leave the Party. The people are fed up, as if Nassim Jade is not enough, while we...
  • WP Must Demand Live Telecast: If not, Singaporeans will not be able to see for themselves WP’s effort in...
  • Ah Peng Kia: Ho Ching is trying to sound affectionate, docile, and humble. We all know she is not. Remember her...
  • C'est la vie: ***** To portray herself ……. cleaning, tidying and mucking in ………. is all...
  • On the contrary: Titiana Ann Xavier: Pro-PAP supporters are alarmed by the Lee family saga. To them, there...
  • Give alternative place place: Just give them an alternative place… Let them earn their hard earn money with...
  • N.Jungne: Enough is enough, disband the PA and dissolve the PAP, cal a new election to decide.
  • Amos humiliate L*L and PAP: Lee family saga is without a doubt good, in fact very good, for Amos. It confirms his...
  • oxygen: @ PAP scornful of Citizens WELL-CONNECTED WORMS, established protocol-compromised, bewildering incompetence...
  • C'est la vie: ***** The only good that will come out of this “dwelling debacle” is that more will be...
  • Amos humiliate L*L and PAP: Zhenzidan: Not only Amos got whacked by LHL but he also got slapped by a stranger, and...
  • XRaider: 1.) LHL must sue LHY and LWL 2.) Indepedent COI to be called to investigate Abuse of Power All those...
  • oxygen: WELL-CONNECTED WORMS inside the NHB have been compromised of hypocritical incompetency and buried beneath...
  • PATRIOT of TEMESAK: Hypocritical Jinx trying to repair and Antique??? She seems to forget the MonkeyMIddle Finger...
  • NotMyProblem: Why she needed to use PMO and stated her name as the contact? Those loan items were from the Estate,...
  • 生于斯,长于斯,死于斯。新加坡人也!: A dying old man’s wish… 1) I want Mee Pok Tah…I decided 2) I want Mee Pok...
  • 生于斯,长于斯,死于斯。新加坡人也!: National day faces: Our country’s National Day approaching very soon..not all is well...
  • The Rot Start From The Top: What if LWL and LHY decide to demolish the house before any outcome from the Ministerial...
  • N.Jungne: Yes, a sliver lining is seen in the near distant
  • WP nothing to lose: First time WP has nothing to lose… PAP scoring own goal…nothing to fear… WP...
  • MarBowling: Alas, the owner of the Extended Rude Middle Finger has FINALLY “show hand”! Wait until LHY...
Announcement
Support TR Emeritus
Support TR Emeritus:
Other Amount:
Advertisement
Advertisement
Free Classifieds
  • Seeking Top Singaporean tutors to regist

    Seeking only Full Time Graduate tutors to register...
    [Read more]

  • Sample of a Premium 4 Ad

    . This ia a sample of how a Premium 4 Ad (can upl...
    [Read more]

Readers Statistic
Latest Statistic