MOM: Pay transparency rules 'may not be effective' without addressing causes of gender pay gap

Releasing guidelines for pay transparency won't be effective without addressing the underlying causes of gender pay gap in Singapore, according to Manpower Minister Tan See Leng on Tuesday.

"Issuing guidelines for pay transparency… may not be effective if we do not tackle the underlying causes of the gender pay gap in Singapore," he said when asked about the government's measures to close the gap.

"Instead, such guidelines could be counter-productive in the long term if they affect how firms choose to hire their employees."

Pay transparency is a growing movement across the world that include policies, where salary ranges are posted in the job description.

In Singapore, 35% of job postings in Indeed in March 2023 included salaries, 1.8 times higher compared to the same month in 2019.

Underlaying causes of gender pay gap

Singapore's gender pay gap narrowed to 14.3% in 2023, down from the 16.3% in 2018.

Tan said the pay gap further narrows to six per cent when looking at men and women with similar characteristics in age, education, occupation, industry, and usual hours worked.

"This adjusted gender pay gap is comparable to that of US and Canada where equal pay legislation or pay transparency legislation have been introduced," he said.

According to the minister, there are various reasons for Singapore's gender pay gap, including occupational differences, parenthood, and discrimination.

"There tends to be a lower share of women in higher-paying occupations such as those in science, technology, and engineering," Tan said.

"The gender pay gap in Singapore is also affected by other factors such as the effects of parenthood and caregiving responsibilities, which women tend to shoulder more than men, as well as workplace discrimination."

Multi-pronged approach to gender pay gap

A multi-pronged approach is needed to address Singapore's gender pay gap, according to Tan.

"Firstly, we need to encourage more women to enter and stay in occupations related to science, technology, and engineering and sectors where there's good potential for salary growth and career progression," he said.

He added that there should also be more equal sharing of caregiving duties at home, while workplaces should allow caregivers to continue working as much as possible.

According to Tan, the government already has focused efforts on addressing gender stereotypes about careers and has expanded the state-funded Paternity Leave to boost sharing of caregiving responsibilities between parents.

"We must ensure that women have equal opportunities in the workplace," the minister added.

"The government will be introducing the Workplace Fairness Legislation later this year, which will strengthen protections against workplace discrimination on the basis of sex, marital status, and caregiving responsibilities, among other protected characteristics."

Tan said the tripartite partners will continue working with the business and HR community on initiatives to reduce the gender pay gap.