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Uplifting lower-wage workers not as easy as just setting minimum salaries: DPM Wong

For the first time, the National Wages Council has recommended a range of progressive wage growth for lower-wage workers.

For the first time, the National Wages Council has recommended a range of progressive wage growth for lower-wage workers.

Uplifting lower-wage workers is not as easy as just setting minimum salaries and Singapore must be careful about “unintended consequences” when working through solutions, said Deputy Prime Minister Lawrence Wong on Saturday (Sept 24).

Speaking at a workshop for the Alliance for Action for Lower-Wage Workers, Mr Wong said that advancing the well-being of lower-wage workers is an important priority for the Government, and that is why it is putting in a lot more resources to uplift lower-wage workers. 

But while Singapore wants to see lower-wage workers get higher starting salaries, it is also important that these workers see continued career progression throughout their working lives.

“This means not just good starting salaries but having the new wage increases tied to a skills ladder,” said Mr Wong, who is also Finance Minister.

“Ultimately, what we want to achieve is a compression of wages in our workplace, not increasing wage gaps but wage compression taking place largely by uplifting of lower-wage workers in Singapore,” he added.

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