Wage Growth Shows Positive Shift in 2024, but Long-Term Growth Remains Modest
In 2024, Singapore’s real incomes made a rebound, recovering from the previous year’s decline as inflation eased. The Ministry of Manpower (MOM) released its annual Labour Force report on Nov 28, highlighting the positive recovery in real incomes for full-time workers.
The nominal median gross monthly income, including Central Provident Fund (CPF) contributions, rose by 5.8% in 2024, reaching S$5,500. After adjusting for inflation, real income growth was 3.4%, a significant improvement from the 2.2% decline experienced in 2023.
For the 20th percentile, which represents lower-income workers, nominal median gross income increased by 7.1%, reaching S$3,026, with real income growth of 4.6%, reversing the 3% decrease in 2023. This faster income growth for lower-income earners indicates a narrowing of income inequality, a positive trend in the country’s labor market.
However, long-term wage growth still remains modest. From 2019 to 2024, the median real income growth averaged just 0.7% per annum, a sharp drop compared to the previous five years, when it grew by 3.8% per annum. This suggests that while there is a short-term recovery, real wage growth over the past five years has been relatively low.
Manpower Minister Tan See Leng expressed confidence that low-wage workers will continue to see income growth in the future as the Progressive Wage Model (PWM), which sets wage requirements for various sectors, continues to be implemented.
Furthermore, nearly 60% of workers who switched jobs in 2024 saw higher pay after changing industries, according to the MOM report, signaling positive mobility within the labor market.
