Average income of low-wage workers up by 9% over past two years

Average income of low-wage workers up by 9% over past two years
By Hoe Yeen Nie, Channel NewsAsia | Posted: 07 June 2009 2115 hrs

SINGAPORE: Low-wage workers, who form 20 per cent of the workforce in Singapore, are earning more now compared to what they did in 2006.

For instance, workers who earned about S$1,200 have seen wages rise by 9 per cent, according to the latest government report. But as the economy worsens, bigger challenges lie ahead.

Zalina Abdul Gani is one worker who has benefited from various government schemes designed to give low-wage employees a leg-up.

She took a course with the Workforce Development Agency (WDA) and with the help of her local community development council, found a job as a kitchen helper at a sushi chain.

"I was working full-time at Hei Sushi, but because of the recession, I switched to part-time. I accept it – it's better than not having any job, or being retrenched," Madam Zalina said.

In a progress report on low-wage workers, those who earned a monthly wage of S$1,200 in 2006 saw their salary go up to S$1,310 last year.

The number of low-wage workers – defined as those who earned S$1,200 or less in gross monthly income – has also gone down.

For instance, the number of low-income employees has fallen from 360,000 in 2006 to 300,000 in 2008. The income gap also narrowed in 2008 – the first such decline in a decade.

But those were the boom years.

With Singapore stuck in a deepening recession and retrenchments set to rise, the outlook for low-wage workers is not great.

From 2006 to 2008, the government spent over S$1.1 billion to help low-wage Singaporeans. It is presently reviewing its programmes, such as the Workfare Income Supplement scheme, to see what else it can do.

Manpower Minister Gan Kim Yong said: "This economic downturn will affect Singaporeans across the board, whichever wage category you're in. But we'll continue to monitor and help the low-wage workers.

"For those who've tried very hard and yet are unable to find a job for a variety of reasons, there will still be help schemes under the normal Comcare Fund, which the MPs and the community administer. They can approach their MPs for help, specifically if they have financial difficulties."

At a dialogue session with Tanjong Pagar GRC residents on Sunday, the issue of foreign workers and foreign talent came up again, with many expressing concerns over what they saw as unfair competition.

"Singaporeans are affected. Some of them have lost their jobs and rightly or wrongly, they think the foreigners are taking away their jobs. I think we can understand and empathise with the feelings," said Mr Gan.

"To keep the foreigners out may be very appealing to the locals, but it may not be the right approach for Singapore in the long term because it will then undermine the basic economic fundamentals. And if we do so, it will affect our long-term economic position."

The manpower minister added that the government will work the ground better to explain its policy, especially during the downturn, when tensions between foreigners and Singaporeans are expected to rise.


- CNA/so

- wong chee tat :)