<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published July 1, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Lower bonuses pare wage rise
Firms expect to cut wages if business conditions continue to worsen: survey
By LEE U-WEN
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TOTAL wages in Singapore - comprising basic pay and bonuses - grew 4.2 per cent in 2008, down from a 5.9 per cent increase in 2007.
While the basic wage increase was largely unchanged, last year's smaller overall rise was due to lower bonuses of 2.31 months on average, compared with 2.36 months in 2007, the Manpower Ministry (MOM) said in two new reports yesterday - the Report on Wages in Singapore 2008 and the Singapore Yearbook of Manpower Statistics.
Another reason for the fall in total wages was the economic slowdown in the fourth quarter of last year.
And if business conditions continue to worsen, two out of five companies polled - employing 44 per cent of the private work force - expect they will need to cut wages in 2009.
In the poll, 32 per cent of companies, which hire 29 per cent of the work force, said they have not yet thought about the issue.
The most common ways to cut wages are pruning both the annual variable component and the monthly variable component (MVC) (74 per cent of companies) and basic wage (47 per cent), followed by the monthly variable component (15 per cent).
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</TD></TR></TBODY></TABLE>About seven out of 10 companies with MVC said they would cut the annual variable bonus and/or MVC when reducing wages. If forced to impose a wage cut, firms with MVC said they were confident of earning their staff's acceptance.
Real wages outpaced productivity growth for a fourth straight year in 2008. Due to strong employment gains early in the year, productivity growth fell 7.8 per cent, compared with a 2.3 per cent drop in total real wages.
The MOM reports also found that jobs that need higher skills and knowledge continue to command higher pay. In June 2008 - the month the latest survey was conducted - the median monthly gross wage was highest for managers ($6,400), followed by professionals ($4,405) and associate professionals and technicians ($3,000).
Clerical ($1,960) and sales and service workers ($1,849) were paid close to $2,000. Among blue-collar jobs, production craftsmen ($2,137) and plant and machine operators ($2,009) were paid much more than cleaners, labourers and related workers ($975). Wages also tend to rise with age, as workers gain experience and skills and become more productive.
Commenting on MOM's findings, a human resources consultant said he is seeing 'pockets of opportunities within the job market although overall hiring has slowed'.
Tim Hird, managing director of HR consultancy Robert Half Singapore, said: 'Although uncertainty continues to prevail, it is imperative for employers to recognise the need to retain their best talent, which will be instrumental in taking businesses to new phases when the market turns.
'For job candidates and potential employees, skills upgrading is key to remaining relevant and marketable to land a job in these tough times.'
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Lower bonuses pare wage rise
Firms expect to cut wages if business conditions continue to worsen: survey
By LEE U-WEN
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
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While the basic wage increase was largely unchanged, last year's smaller overall rise was due to lower bonuses of 2.31 months on average, compared with 2.36 months in 2007, the Manpower Ministry (MOM) said in two new reports yesterday - the Report on Wages in Singapore 2008 and the Singapore Yearbook of Manpower Statistics.
Another reason for the fall in total wages was the economic slowdown in the fourth quarter of last year.
And if business conditions continue to worsen, two out of five companies polled - employing 44 per cent of the private work force - expect they will need to cut wages in 2009.
In the poll, 32 per cent of companies, which hire 29 per cent of the work force, said they have not yet thought about the issue.
The most common ways to cut wages are pruning both the annual variable component and the monthly variable component (MVC) (74 per cent of companies) and basic wage (47 per cent), followed by the monthly variable component (15 per cent).
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Real wages outpaced productivity growth for a fourth straight year in 2008. Due to strong employment gains early in the year, productivity growth fell 7.8 per cent, compared with a 2.3 per cent drop in total real wages.
The MOM reports also found that jobs that need higher skills and knowledge continue to command higher pay. In June 2008 - the month the latest survey was conducted - the median monthly gross wage was highest for managers ($6,400), followed by professionals ($4,405) and associate professionals and technicians ($3,000).
Clerical ($1,960) and sales and service workers ($1,849) were paid close to $2,000. Among blue-collar jobs, production craftsmen ($2,137) and plant and machine operators ($2,009) were paid much more than cleaners, labourers and related workers ($975). Wages also tend to rise with age, as workers gain experience and skills and become more productive.
Commenting on MOM's findings, a human resources consultant said he is seeing 'pockets of opportunities within the job market although overall hiring has slowed'.
Tim Hird, managing director of HR consultancy Robert Half Singapore, said: 'Although uncertainty continues to prevail, it is imperative for employers to recognise the need to retain their best talent, which will be instrumental in taking businesses to new phases when the market turns.
'For job candidates and potential employees, skills upgrading is key to remaining relevant and marketable to land a job in these tough times.'
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