Stronger nominal income growth, easing inflation boost to real wages, MOM says
Real wages in Singapore rebounded this year, with income growth growing faster for employees at the 20th percentile (P20), according to new labour force data from the Ministry of Manpower (MOM).
The advance release of Singapore's labour force report found that real incomes went up for both the median and P20 in 2024 after declining a year ago.
Median real incomes went up 3.4% after a -2.2% decline in 2023, while real incomes for those at the 20th percentile increased 4.6% after a -3.0% decline.
"Income growth was also inclusive, with the P20 income growing faster than the median," the report read.
The report attributed the hike in real wages to easing inflation and stronger nominal income growth.
According to the report, the nominal median gross monthly income of full-time employed residents increased by 5.8%, going up from $5,197 to $5,500 in 2024. This is higher than the 2.5% growth recorded a year prior.
For those at the 20th percentile, nominal income went up 7.1%, from $2,826 in 2023 to $3,026 in 2024. This is also much higher than the 1.7% growth from 2022 to 2023.
Source: Ministry of Manpower
"Income growth at the 20th percentile outpaced the median, narrowing the income gap between P20 and the median," the report read.
Those at the 20th percentile are at the lower end of Singapore's income scale - and the report attributed their faster income growth to initiatives that uplift lower-wage workers, such as the Progressive Wage Model (PWM) and the recommendation on the quantum of wage increase for lower-wage workers.
"As a result, the P20 to P50 income ratio improved to 0.55 in 2024, from 0.54 in 2023 and 2019, and 0.52 in 2014," the report read. "Greater income increases at P20 are expected in the coming years, as increases in nominal wage requirements under the PWM are gradually implemented."
Meanwhile, the report also revealed an "ageing population" in Singapore, as the labour force participation rate among residents aged 15 and over further went down to 68.2% in 2024.
Source: Ministry of Manpower
"The decline is primarily due to a rising proportion of seniors, who have lower labour force participation rates than younger age groups," the report read. "However, Singapore's labour force participation rate for residents aged 15 and over remains higher than that of many other major cities with ageing populations."
