I refer to the article ” Wage Credit Scheme: $800 million in pay subsidies for over 74,000 employers by March 31 ” (Straits Times, Mar 18).
1 in 3 no pay rise?
It states that “Of the Singaporeans eligible for the scheme, two-thirds received pay rises last year, which this first tranche of Wage Credit Scheme payouts is helping to fund.”
- Does it mean that 1 out of 3 Singaporean workers who earn less than $4,000 did not get any pay rise at all?
Breakdown of those with no pay increase?
As to “Lower-income Singaporeans – those in the bottom fifth – received a larger median pay rise of 10 per cent, compared to 8 per cent for all employees under this scheme.”
- how many in the bottom fifth and median did not receive any pay rise at all?
The real median income (excluding employer CPF contribution) growth was only 1.8 per cent last year.
Wage credit scheme to help increase productivity and wages?
With regard to “The WCS was introduced in 2013 as part of a three-year transition support package to help businesses to cope with rising wage costs so that they can free up resources to invest in productivity, and share their productivity gains with their employees.”
- productivity growth last year was close to zero.
So, after spending $800 million – the outcome was extremely disappointing on all fronts – one-third of the workers did not get any pay rise, low real median income growth and zero productivity growth.
Perhaps it may be better to pay the $800 million and the future wage credit directly to lower income Singaporeans instead.
By the way, would you be any wiser to arguably, the miserable failure of the wage credit scheme, after reading the reports of our 150th press freedom ranking media?
Leong Sze Hian
*Leong is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, columnist for Malaysiakini, executive producer of the movie Ilo Ilo (24 international awards). He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors and 13 professional qualifications.