Better Pay for Private Sector Employees
According to reports, their real wages saw a 3.2 per cent growth, which is the slowest since 2013 when it was at 2.9 per cent.
Results released by the ministry recently, 78 per cent of about 600,000 local employees with at least a year in service reported a salary increase.
In 2016, it was only 75 per cent.
However, due to the rising costs of living, their real wage growth slowed compared to back in 2016.
Also, inflation increased to 0.6 per cent last year, up from -0.5 per cent in 2016.
As for normal wage growths last year, it was 3.8 per cent compared to 3.1 per cent previously.
The ministry’s Report on Wage Practices last year covered a total 4,900 private sector companies with at least 10 employees each.
Other findings from the survey revealed that 65 per cent of companies increased total wages last year from 58 per cent a year ago, while 10 per cent of employees had wage cuts – this was down from 13 per cent.
A total 75 per cent of companies were profitable, down from 76 per cent previously.
The survey also revealed that 62 per cent of companies that hire low wage workers gave them an increase.
The increase for these workers who earned $1,200 a month was the highest since 2013. In 2016, only 40 per cent received an increase.
Most companies increased the wages more than the recommended amount of $45 to $60 which was in accordance to the guidelines issued by the National Wage Council.
Those who did not grant any wage increases said it was due to poor business and that they were already paying market rates.
Those concerned were in the transportation, storage and construction industries.