18 percent drop in salary for poly graduates?

January 10, 2012

Posted by theonlinecitizen on January 10, 2012

~by: Leong Sze Hian~


I refer to the article “Higher pay but fewer full-time jobs for polytechnic graduates: Survey” (Today, Jan 9).

It states that “The median gross monthly salary of fresh poly graduates in full-time permanent employment went up by S$50 to S$1,850. For post-NS graduates, their salaries rose by S$100 to S$2,100”.

According to the same survey for 2007 (see HERE), the average gross monthly salary of fresh poly graduates was $1,805, and $2,171 for post-NS poly graduates.

This means that salaries grew by 2.5 per cent for fresh graduates, and decreased by 3.3 per cent for post-national service graduates, over the last five years

On an annualised basis, this works out to 0.5 per cent and minus 0.7 per cent per annum, for fresh and post-national service graduates.

Since inflation was 2.1, 6.6, 0.6 and 2.8 per cent for 2007, 2008, 2009 and 2010, respectively, and current inflation is at 5.7 per cent, I estimate that the salary of fresh graduates and post-national service graduates may have declined in real terms by about 14 and 18 per cent, respectively, over the last five years or so.

I am rather puzzled by the use of the median gross monthly salary in this year’s survey, when the previous years’ were on the average gross monthly salary.

Median vs average salary?

For example, although this year’s median gross monthly salary for fresh graduates increased by 2.8 per cent, to $1,850 from last year’s $1,800, and that for post-national service graduates from $2,000 to $2,100, the average gross monthly salary in last year’s survey was higher at $1,871 and $2,183 for fresh and post-national service, respectively.

So, without the average data for this year, or the median data for the previous years, we cannot determine to what extent the median and average salary went up or down, in nominal and real terms.

Full-time jobs declining?

The percentage of poly graduates in full-time permanent employment declined from 68.5 to 67 per cent this year. Actually, the decline may be greater if we compare this year’s to the 75.3 per cent in 2007.

Foreign competition?

To what extent has the S-Pass, which used to have a minimum salary of $1,800, and the recently discontinued Employment Pass Eligibility Certificate scheme which allowed foreign graduates to stay up to a year in Singapore to look for a job, contributed to the drop in real salaries of poly graduates?

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.