Written Answer to PQ on Incidence of Low Pay in Singapore

NOTICE PAPER NO. 118 OF 2025 FOR THE SITTING ON OR AFTER 15 OCTOBER 2025
QUESTION NO. 346 FOR WRITTEN ANSWER

MP: Mr Patrick Tay Teck Guan

To ask the Minister for Manpower based on the OECD’s definition of low-pay incidence (the share of workers earning less than two-thirds of median earnings) (a) what is the incidence of low pay in Singapore; and (b) how does this compare with the average incidence across OECD countries.

Answer:

1. Singapore’s proportion of full-time employed residents earning less than two-thirds of median wage was about 30% in 2024. This is higher than the average of 13% across OECD countries based on latest-available 2023 data. While these countries may have a lower share of workers earning less than two-thirds of median wage in comparison to Singapore, many of them also have higher unemployment and lower labour force participation rates. Furthermore, lower-wage workers in Singapore can benefit from Government transfers such as income top-ups through Workfare and other forms of support, which are not accounted for in the OECD’s definition.

2. Singapore has made headway in improving wage outcomes for lower-wage workers. From 2021 to 2024, real gross monthly income at the 20th percentile rose by 6.3% cumulatively compared to real median wages which rose by 3.2%.

3. Tripartite partners will press on with efforts to uplift lower-wage workers in the coming years, including through meaningful and sustainable wage increases through the Progressive Wage Model. The National Wages Council also recommends higher wage growth for lower-wage workers annually, to narrow the wage gap between lower-wage and median-wage workers. Through these efforts, we will continue to support strong wage growth for lower-wage workers, in line with the tripartite ambition to uplift lower-wage workers and support their wellbeing.