ASPIRE report ignored the fact that starting salaries dropped up to 10% in 5 years

The Aspire report?

We refer to the article “Parliament asked to endorse Aspire report on upgrading for all and rewards based on skills” (Straits Times, Sep 5).

Rewarding non-degree graduates?

It states that “Released in August, it sets out the Government’s policy to ensure that all Singaporeans, whatever their qualifications, enjoy full opportunities to upgrade and progress during their working lives,

Ms Rajah, who chaired the Aspire committee, said its report also sets out the Government’s support for a tripartite approach to instil a culture of life-long learning, and to recognise and reward individuals based on their skills and performance.”

Forgotten about pay?

Perhaps the most obvious issue pertaining to ITE and polytechnic graduates that we understand may be missing from the Aspire report – may be that their starting pay may not increased in real terms for many years already.

Unless this issue is acknowledged and we do not arguably continue to be in a state of denial by not mentioning this at all – how can we address the question of how to improve our vocational education system?

In this connection, the data from the Ministry of Manpower’s (MOM) Graduate Starting Salary Table(s) in 2012 is rather pathetic.

ITE – Real starting pay dropped 10% in 5 years?

The median monthly gross starting salary of ITE fresh graduates in full-time employment increased from $1,217 to $1,350, from 2007 to 2012.

This is an increase of about 11 per cent over the 5 years, or about 2.1 per cent per annum.

Since inflation was about 21 per cent from 2007 (CPI 93.2) to 2012 (CPI 113.1) – does it mean that in real terms – salaries dropped by about 10 per cent over the 5 years or about minus 1.8 per cent per annum?

As to polytechnic graduates’ starting pay – the data from the Ministry of Manpower’s (MOM) Graduate Starting Salary Table(s) is also pathetic.

Poly Real starting pay dropped 5% in 5 years?

The median monthly gross starting salary of polytechnic fresh graduates in full-time employment increased from $1,800 to $2,000, from 2008 to 2013.

This is an increase of about 11 per cent over the 5 years, or about 2.1 per cent per annum.

Since inflation was about 16.5 per cent from 2008 (CPI 99.4) to 2013 (CPI 115.8) – does it mean that in real terms – salaries may have dropped by about 5.5 per cent over the 5 years or about minus 1 per cent per annum?

Negative real total wage change?

According to the Ministry of Manpower’s (MOM) web site, the real annual total wage change (excluding employer CPF) from 2008 to 2012, was -2.4, -1.0, 2.7, 0.1 and -0.8, respectively.

This works out to a cumulative real decrease in wage change of about -1.5% or -0.29 per annum, from 2008 to 2012 – A negative real total wage change for the last 5 years.

Real income growth?

Real median income change from 2008 to 2013 was only about 1.0 per cent per annum

… for the 20th percentile – the real change per annum for the last 10 years was only about 0.3 per cent.