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Thread: MOM Report on Wages

  1. #1
    Join Date
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    Default MOM Report on Wages

    Interesting Article from MOM

    Inflation high high, increment not as high.

    Like that how to save enough to buy Condom, oops, I mean Condo.

    "WHAT DO YOU THINK?"

    Report on Wage Practices, 2012

    5 June 2013
    1. The tight labour market continued to raise workers' wages, but the pace of increase has moderated in 2012, amid the weaker economic conditions. A large majority of employees were also under some form of flexible wage system. These are the key findings from the "Report on Wage Practices, 2012" released by the Ministry of Manpower's Research and Statistics Department.

      Main Findings
    2. Total wages (including employer CPF contributions) in the private sector rose by 4.2% in 2012. This was lower than the growth of 6.1% in 2011, reflecting the weaker economic conditions in 2012. After adjusting for inflation using the Consumer Price Index (CPI) for all items, real total wages (including employer CPF contributions) declined by 0.4% in 2012, after rising by 0.9% in 2011. When adjusted using CPI less imputed rentals on owner-occupied accommodation (OOA), which relates more directly to the actual cash expenditures of households, real total wages (including employer CPF contributions) rose by 0.5% in 2012, after increasing by 1.9% in 2011.
    3. Over the long term, real wage increases have been supported by productivity growth. Labour productivity grew on average by 1.6% per annum, exceeding the growth in real total wages (including employer CPF contributions) of 1.2% per annum over the decade from 2002 to 2012. In the immediate post-SARS years, labour productivity grew strongly on the back of robust GDP growth. However, in the last 5 years, labour productivity shrank by 0.4% per annum as economic growth was driven primarily by employment.
    4. A large majority of employees in the private sector were under some form of flexible wage system, following a general uptrend in the implementation of flexible wage measures recommended by the tripartite partners representing employers, workers and the government in 2004. In December 2012, 87% of private sector employees were working in establishments which had at least one of the flexible wage components recommended by the tripartite partners. This was comparable to the 86% in December 2011 and notably higher than the 76% in June 2004.
    5. Having a narrow maximum-minimum salary ratio was the most common wage recommendation adopted, with nearly two in three (65%) private sector employees working in establishments with this flexible wage component. This was followed by linking variable bonus to Key Performance Indicators (KPI) (49%) and having the Monthly Variable Component (MVC) (34%) in the wage structure.

  2. #2
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    Wah, even more more statistics in pdf here, need sometime to digest.

    Any bru & sis wanna comment?

  3. #3
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    Keep hearing the MIW saying HDB flats are affordable but also keep reading that wage increase lags housing price increase for like so many years le... its probably moved from more affordable to less affordable to just affordable and before we know it, unaffordable! How long more will they continue to use the word 'affordable'?

    HDB's logo is to provide affordable and quality homes... time to review that statement yet?

  4. #4
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    Affordable for bto since the bto's price hv been de-link from the market.

  5. #5
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    So which country is affordable? Even malaysia their own citizens are saying unaffordable in malaysia. Try earning malaysian pay in malaysia and live there.

  6. #6
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    Brudder, don't bother about % wage increase.... The scenario is like this

    Hdb - 80%
    Private - 20%

    Hdb - house hold income less than 10k/mth for eligibility.
    EC - house hold income less than 12k/mth for eligibility.

    So the guideline is.... The household comprising husband and wife should earn 12k/monthh before going into private. Based on new revision.... There are always exceptions to the case... Like,
    1. Family rich
    2. Made money from hdb and upgrade because loan amount shrink.

    So the key is to get yourself into the top20% bracket or have that potential. That is where the comfort level will come in.

    The minute you are in top 20%, life is different... Let me share an example...

    Family A earns 15k/month. 4% increment per year.

    Family B earns 6k/month. 4% increment per year.

    After 5 years, what is their salary???

    Life is never fair. It is up to us to have a unique "skill" to command a premium on our salary....


  7. #7
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    Default

    Quote Originally Posted by chestnut
    Brudder, don't bother about % wage increase.... The scenario is like this

    Hdb - 80%
    Private - 20%

    Hdb - house hold income less than 10k/mth for eligibility.
    EC - house hold income less than 12k/mth for eligibility.

    So the guideline is.... The household comprising husband and wife should earn 12k/monthh before going into private. Based on new revision.... There are always exceptions to the case... Like,
    1. Family rich
    2. Made money from hdb and upgrade because loan amount shrink.

    So the key is to get yourself into the top20% bracket or have that potential. That is where the comfort level will come in.

    The minute you are in top 20%, life is different... Let me share an example...

    Family A earns 15k/month. 4% increment per year.

    Family B earns 6k/month. 4% increment per year.

    After 5 years, what is their salary???

    Life is never fair. It is up to us to have a unique "skill" to command a premium on our salary....

    Agree, one way is to think of ways and means to get into the top 20% brackets. Almost all the bros and sis here are in this bracket.

    Another way is to grow your savings exponentially through all sort of investments. The second approach is taken by your humble brother here, he is not very successful in career with only a 5 plus k family income. So he has no choice but to go this route.

  8. #8
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    May 2012
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    Quote Originally Posted by NorthernStar
    Affordable for bto since the bto's price hv been de-link from the market.
    Landing one is akin to striking toto.

  9. #9
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    May 2012
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    Quote Originally Posted by Allthepies
    Agree, one way is to think of ways and means to get into the top 20% brackets. Almost all the bros and sis here are in this bracket.

    Another way is to grow your savings exponentially through all sort of investments. The second approach is taken by your humble brother here, he is not very successful in career with only a 5 plus k family income. So he has no choice but to go this route.
    For sole breadwinners and single households, bo pian. You are already quite close to 6k.

    Job income is just fleeting. For most ordinary folks, there will come a time when it is 0. So it is not the be all and end all to make money.

  10. #10
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    Quote Originally Posted by Allthepies
    Agree, one way is to think of ways and means to get into the top 20% brackets. Almost all the bros and sis here are in this bracket.

    Another way is to grow your savings exponentially through all sort of investments. The second approach is taken by your humble brother here, he is not very successful in career with only a 5 plus k family income. So he has no choice but to go this route.
    Brudder, u have my utmost respect!!!
    Not many have balls like yours. Honestly, u need lots of guts and luck. Let me ask u a question. Imagine today u are going in for first investment prop, siong rite! Price so high and upside lower than 6-8 yrs ago. So well done!!! Utmost respect. Timing, guts, vision and luck!!!!

    Cheers

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