Straits Times: Real wages projected to shrink
I saw this sobering news report by the ST:
SALARIES in Singapore will tend to rise by less than the inflation rate this year – so real wages will actually shrink.
According to a survey by global consulting firm Hay Group, the median salary increase here for the next 12 months is projected to be 1.5 per cent.
This is the lowest rise in 13 years – since Hay Group’s first survey in 1997 – said the firm, which surveyed 300 Singapore-based companies in both the private and public sectors in March.
With inflation hovering at 1.6 per cent, the firm said disposable income would ultimately still have shrunk by the end of the year.
The first comment to this article is also particularly informative:
To begin with, inflation far exceeds 1.6%. The basket of goods and services is not reflective of real consumption. It also ignores Singapore’s excessive utilization taxes–GST, ERPs…etc. Real net income has been declining substantially for a over a decade
Posted by: yankeeinsingapore at Sat May 09 04:24:12 SGT 2009