Author: Editorial (TREmeritus)About 2 months ago (31 Jan), the Ministry of Manpower (MOM) has released its report, “Employement Situation 2011″ to the public [Link].
In the report, MOM said that, supported by strong employment creation, the unemployment rate declined to a 14-year low in 2011. It also reported that the median income of Singaporeans had increased, “amid the tight labour market”, in 2011.
Some of the key findings in the report are:
• As at end 2011, locals (meaning Singaporeans and PRs) accounted for 67.2% of persons employed in Singapore. Foreigners formed the remaining 32.8%, up from 31.4% in 2010. Foreign domestic workers were not included in the statistics.
• Unemployment rate for Singaporeans was 3.0% in 2011 (a 14-year low) compared to 3.4% in 2010.
• And according to the report, nominal median income rose by 6.3% to $3,070 in 2011 compared to 5.1% in 2010 among employed Singaporeans. However, the real median income growth, i.e. after adjusting for inflation, was only 1.0% in 2011, down from 2.2% in 2010:
| 2010 | 2011 | |
| SG Median income growth (nominal) | 5.1% | 6.3% |
| SG Median income growth (real) | 2.2% | 1.0% |
However, thanks to Leong Sze Hian’s letter to the media [Link], asking why a real median income growth rate of -0.6% for 2011 was used in the calculation of National Bonus for political office-holders, Prime Minister’s Office and MOM came out to clarify.
It was revealed thus revealed by the Government that the MOM’s 1.0% real median income growth rate for employed Singaporeans included the employers’ CPF contributions while the -0.6% real median income growth rate used by PMO for the National Bonus calculation did not include.
PMO said it had computed the National Bonus payout using income figures sans the contributions as it was felt that changes to employers’ CPF rates are decided by the Government and, hence, should not be linked to the payout for political office-holders.
Therefore, we now know that in 2011, the real median ‘Take-home’ income growth rate among employed Singaporeans is -0.6% (i.e., excludes employers’ CPF contributions).
