[SINGAPORE] The labour movement is calling on the government to further raise the local qualifying salary (LQS), among other moves to help lower-wage workers.
The LQS is the minimum that local workers must be paid if their employers hire foreign workers. This was last increased in July 2024 to S$1,600, noted National Trades Union Congress (NTUC) assistant secretary-general Melvin Yong.
“NTUC calls on the government to further raise the LQS in this term of government to narrow the gap between lower-wage and median workers,” he said on Monday (Sep 22).
In 2024, the median gross monthly income was S$5,500, compared to S$3,026 at the 20th percentile.
Yong was among several Members of Parliament (MPs) who raised labour issues on the first day of the debate on the President’s Address, at the first session of the 15th Parliament.
New workgroup, Progressive Wage for more
Yong noted that inequality has narrowed, with Singapore’s Gini coefficient falling to 0.435 in 2024, from 0.464 in 2014. Accounting for transfers and taxes, it was lower, at 0.364.
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The Gini coefficient is a measure of inequality, where a score of 0 represents perfect equality, and 1 represents perfect inequality.
However, income at the 20th percentile is about 55 per cent of the median – falling short of the two-thirds benchmark set by the Organisation for Economic Co-operation and Development, noted Yong.
He suggested that a refreshed Tripartite Workgroup on Lower-Wage Workers be convened to close this gap.
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NTUC also wants to “broaden and deepen the impact” of the Progressive Wage Model (PWM) in two areas.
Earlier in the debate, Minister of State for Manpower Dinesh Vasu Dash highlighted the PWM as “the government’s way of ensuring that the most vulnerable among our workers are protected, and that their salaries are increased in tandem to cope with the cost of living”.
The PWM now covers more than 155,000 workers in nine sectors and occupations, where employers must pay at least the specified PWM wage at each job level.
First, NTUC will put a stronger emphasis on productivity as the enabler of sustainable wage growth, said Yong.
He gave the example of a waste-management company using recycling bins with artificial intelligence (AI) features under NTUC’s Company Training Committee (CTC) framework. These “boosted productivity, reduced contamination, and enabled higher-value jobs with a 5 per cent pay increase for 100 workers”.
Second, NTUC aims to expand the PWM into more sectors, such as pest management.
This essential public health service continues to be “plagued by low wages and high attrition”, he said. “A PWM here would create structured career and wage ladders, strengthening both livelihoods and the resilience of the sector.”
National AI initiative
Earlier in Monday’s debate, NTUC secretary-general Ng Chee Meng spoke on two other labour topics: ensuring good jobs amid AI disruption, and support for caregivers.
NTUC wants to work with the government and tripartite partners to introduce a national AI adoption and training initiative, said Ng, suggesting the name “AI-Ready SG”.
This can be a one-stop platform that integrates existing resources from the government and partners, and rides on the CTC ecosystem, he said.
It should give access to upskilling resources and help workers navigate career transitions, as well as provide resources for employers to carry out practical AI transformation.
Earlier in the debate, Pasir Ris-Changi GRC MP Sharael Taha said AI adoption can raise productivity, with potential gains of up to S$27 billion in manufacturing alone.
AI and other growth industries “are not the ends in themselves”, but paths to “better jobs, higher incomes and long-term competitiveness” for Singaporeans, he said.
He called for more government support to navigate these opportunities, such as refreshed industry transformation maps that are aligned with jobs.
Noting that many businesses find tripartite and government schemes fragmented and tough to navigate, he suggested a single agency or portal to simplify access.
Help for caregivers
Ng also called for more support for caregivers. First, to help them to stay in work, Singapore “must expand flexible work arrangements and enshrine caregiving leave, making them more widespread, accessible, and importantly, stigma-free”.
Second, to help those who have left work to return to it. Singapore must ease their transition by redoubling efforts on “Back to Work” programmes.
Third, the “ecosystem of care” must be strengthened. This means ensuring that care support for the elderly and people with disabilities is available, affordable and accessible.
Singapore must also be prepared to review policies, Ng said. This includes reviewing MediSave limits and caregiving subsidies; providing Central Provident Fund top-ups for primary caregivers; enhancing community care services; and strengthening care coordination.
Workers’ Party MPs also raised the topic of social support, with He Ting Ru (Sengkang GRC) warning: “When financial pressures grow, community often takes the back seat.”
These pressures strain relationships as well as physical and mental health, and lead to lower civic engagement as people withdraw from social activities, she said.
Financial pressures may also weaken social capital, diminishing community resilience and risking a “downward spiral” where vulnerable groups are more disproportionately affected by economic weakness.
