Fewer profitable firms in 2016, with fewer employees getting pay raises: MOM report

SINGAPORE - Fewer firms were profitable in 2016 compared to 2015, with fewer employees getting wage increases last year.

This is according to a report from the Ministry of Manpower (MOM) released Tuesday (May 30).

According to MOM, the proportion of profitable firms fell from 79 per cent in 2015 to 75 per cent in 2016.

The proportion of employers that gave wage increases to their employees also fell in 2016, resulting in a slightly lower proportion of employees with an increase in total wage.

The proportion of establishments that raised total wages decrease from 64 percent in 2015 to 58 percent in 2016, while the proportion of employees who received total wage increases also fell, from 77 per cent in 2015 to 75 per cent in 2016.

Another finding was that total wages (including employer CPF contributions) of private sector employees grew at a slower pace of 3.1 per cent in 2016, compared with the 4.9 per cent increase in 2015.

More profitable firms continued to give higher total and basic wage increases than less profitable ones, according to the report. Profitable firms also gave larger bonuses (of at least 2 months on average) compared with loss-making firms (1.31 months).

The report also added that 90 percent of private sector employees now work in establishments that have some form of flexible wage system, the highest since 2004.

To read the full report, visit MOM's website here.

akosasi@sph.com.sg