Officials are urging companies to give out one-off special lump sum payments to help offset concerns about inflation and the rising cost of living.
By Maggie Mancini
Amid growing concerns about inflation and the rising cost of living, Singapore government officials are urging employers to provide special financial support to workers, including one-off lump sum payments. Officials believe that these payments would provide particular support for lower and middle-income workers.
In addition to one-time payments, Singapore government officials are pushing for companies to reward employees with wage increases or variable payments that they deem sustainable, according to the Ministry of Manpower (MOM).
Officials from the MOM say that despite an increase in productivity, “economic headwinds and higher costs will adversely impact the prospects of some businesses. Hence, the government supports the differentiated wage guidelines for employers, based on the different performance and outlook of businesses.”
The news comes as Singapore’s labor market has expanded throughout the first three quarters of 2023 despite concerns about its economic standing. Total employment has increased among both residents and non-residents.
The government recommends that companies continue with business transformation to seize new opportunities, utilizing enterprise grants and jobs and skills programs provided by government agencies. Employers should also continue to uplift lower-wage workers to “bolster ongoing efforts to narrow the income gap.”
The Ministry of Trade and Industry (MTI) has projected that Singapore’s economy will expand by 0.5% to 1.5% in 2023.