In order to assist employees in response to inflation pressure, the National Wage Council on Tuesday (October 31) suggests that employers provide special subsidies for employees to get high subsidies for low- and middle -income income, and low -income low -income income for low -income incomeThe salary increase of 5.5%to 7.5%, or at least 85 to 105 yuan, which is high.This is a generous salary increase suggestion for the second consecutive year, and it is also a special subsidy to distribute special subsidies after 2011.In 2008 and 2011, when Singapore faced inflation pressure, the salary would have similar suggestions.
In addition to considering inflation, geopolitical situations, and macroeconomic conditions, salary increases must also take into account labor productivity.The productivity of the local labor team increased by an average of 2.7%per year from 2016 to 2022, but compared with the same period last year this year, it fell 5.7%. Wages will be recommended to increase salary when the productivity has not improved.The economic principles that should be matched in productivity should be more focused on the principles of social fairness.
If you only consider economic benefits, people's wages will not be able to keep up with living expenses in the short term.Over the past 10 years, the proportion of employees' salary has a decline in the proportion of GDP.In 2013, employee salary accounted for 42.6%of the GDP, and the crown disease fell to 40%in 2019 before the outbreak.By 2022, the proportion of employees' salaries fell further to 36.6%.Although the economic fruit is getting stronger and strong, employees have not been divided into more benefits.
In the face of rising living expenses and the impact of high interest rates on the burden of loans, the latest wage guidance principle announced by wages can alleviate the pressure of low -income people in their lives to a certain extent, butConsidering that the overall inflation rate in 2023 is expected to be 5%, it is estimated to be 3%to 4%next year. The proposal for wages is only to allow the actual income of low -income employees to keep up with the overall inflation rate, and the actual salary increase is insignificant.In the long run, we need to do more for them.
Everything is high, not only employees, but also employers.While helping low -income employees alleviate inflation pressure, it is also necessary to consider the employer's ability.In addition to the rising prices of materials, merchants must also cope with increasing operating costs such as rent, water and electricity costs.After the labor cost of Singapore units rose by 10.1%in the first quarter of this year, the second quarter continued to increase by 10.2%.The continued growth of wages and the did not increase the productivity accordingly, which pushed up the labor costs of each unit, and then weakened the competitiveness of Singapore, so it was unsustainable.Comprehensive factors such as the decline in labor productivity, financial pressure, and weak industry prospects will make some companies feel that the special subsidies and salary increase suggestions of some companies may have a heavy burden, so they may have to cut off some employees.This is not the ending that anyone wants to see.
There are huge productivity in different industries, and some industries face more serious problems, such as manufacturing, construction and financial industries.In the face of fierce global competition, enterprises cannot take it lightly. They must continue to innovate and improve efficiency. Take measures to improve productivity to maintain the opportunity to survive.Employers and employees should work hard to transform and train.Facing the uncertain economic prospects, these measures are even more urgent. Employers and employees must maintain flexible response ability, adapt to the changing environment and seize opportunities.In the long run, Singapore can maintain its global competitiveness and improve the living conditions of low -income groups.
The proposal of wages is usually the vane of Singaporeans for annual wage growth expectations. Employers and trade unions use it as a framework for wage negotiations, and some non -trade companies will also be reference.Regardless of high -paying employees or low -paying employees, it is necessary to meet the reality when requesting salary increase. In case the company cannot bear the cost pressure, the result will be defeated.In addition, if the overall salary is growing too fast, it will drive further prices to rise, which will make people demand higher salary increase and cause a vicious circle.
