S’poreans underpaid by hundreds relative to productiveness

Luckily, the hole is closing

Disclaimer: Until in any other case said, any opinions expressed beneath belong solely to the writer. Knowledge sourced from the Labour Pressure In Singapore Advance Launch 2025 report.

Yesterday, I introduced you some optimistic information about how half of Singaporeans are about to be making S$6,000 per thirty days or extra. As we speak, nonetheless, I’ve one thing that will dampen the temper, coming from the exact same labour drive report launched by the Ministry of Manpower final week.

Sadly, Singaporeans look like underpaid in relation to the productiveness features recorded in recent times.

As you possibly can see, with 2016 set as the bottom 12 months, productiveness and incomes seem to have been linked over the following 4 years, proper up till the pandemic, which introduced appreciable financial upheaval.

It appears to have been relatively worthwhile in Singapore, although, because the value-added per employee jumped in 2021 (maybe pushed by a surge in pandemic-related commerce) and continued all through the post-pandemic revival till this 12 months, whereas incomes adopted a correlated path however at a significantly decrease stage.

In consequence, by 2025, employee productiveness had elevated by 17.6% relative to 2016, however incomes rose by solely 13.1%. Thoughts you: each figures symbolize actual modifications, after adjusting for inflation.

This implies imply incomes are struggling an actual deficit of round 4%—that is how a lot Singaporeans, on common, are being underpaid relative to their elevated productiveness.

This equals S$400 for each $10,000 in annual earnings, so an individual with an annual pay of S$30,000 can be worse off by S$1,200. This determine grows to S$2,400 at S$60,000, S$4,800 at S$120,000, and so forth.

On paper, it’s an actual lack of hundreds of {dollars} yearly. Luckily, nonetheless, the hole is displaying indicators of shrinking from over 6% in 2024.

Tips on how to learn these figures

Earlier than you bounce to conclusions, nonetheless, I ought to stress that these are simply averages for all the economic system. Whether or not or not you are underpaid relies on the business you’re in, as totally different companies have been impacted in several methods.

Some have reaped outsized advantages whereas others struggled to remain afloat.

What’s extra, on this case, the wage knowledge doesn’t embrace bonuses. Why this issues might be seen within the case of Singapore Airways, which paid out big 8-month bonuses to workers following its sturdy ends in 2023 and 2024. This got here after lean years beneath lockdowns, with some individuals laid off and the remaining taking wage cuts. So, whereas their base remuneration could have suffered, they benefited from a considerable windfall later.

The identical might be true for different affected corporations, however it isn’t captured in these statistics.

Then again, it’s equally potential that employees in some industries could also be underpaid by much more, whereas others are overpaid—with the last word common coming right down to unfavourable 4%.

This is the reason it is best to at all times take broad, nationwide summaries with a pinch of salt and think about your personal state of affairs subjectively.

Nonetheless, what the information does present is a sure drop in primary incomes relative to employee efficiency, albeit with indicators of enchancment because the distinction seems to be shrinking.

If the development continues, particularly amid now secure and really low inflation (which helps corporations plan forward), we should always see the hole finally erased because the economic system lastly returns to the pre-pandemic regular.

And if that’s the case, then extra Singaporeans will see larger raises within the subsequent two to 3 years, as their incomes catch as much as the place they need to be.

• Learn extra tales we’ve written on the newest job developments right here.

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