SINGAPORE: Compared to the second half of 2022, Singapore’s real median revenue decreased by 4.5 percent in 2019.
According to preliminary estimates, the decline was brought on by higher inflation and a gloomier economic outlook, according to Manpower Zaqy Mohamad, senior minister of state, who spoke to parliament on Tuesday( Nov. 7 ).
The government anticipates average inflation for the remainder of the year, even though the economic outlook is still uncertain, he said.
Real median salary is the amount of money a common worker makes after accounting for inflation.
Over the same time span, minimum middle money, which does not take inflation into account, increased by 0.9 %.
In contrast, the five-year view from 2017 to 2022 revealed that real median income increased by about 9.4 %, or 1.8 percent annually, over that time span, outpacing prices.
Real wages increased by 0.4 % last year, with inflation” significantly dampening” the rate of growth, according to MOM in May.
In January, Singapore’s core inflation increased to 5.5 % year over year, the highest level since November 2008. Since then, it has decreased to 3 % in September.
Members of Parliament( MPs ) questioned Mr. Zaqy about actual wage growth, particularly how price increases affected vulnerable workers.
Over the past five years, he claimed, lower-wage workers have seen excellent actual income growth.
Real income at the 20th percentile increased by 15.4 %, or 2.9 percent annually, from 2017 to 2022. At the middle, this was faster than 1.8 percent annual development.
This indicates that as living expenses increased, lower-wage workers’ incomes increased yet more, closing the salary gap between them and the median worker, he claimed.
According to Mr. Zaqy, wage increases are anticipated to remain stable in the travel-related industries, where demand is recovering, as well as in more labor-intensive services industries where frequent labor shortages may occur.