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Jamus Lim urges wage hikes, CPF employer contribution boost, and minimum wage 

In the Budget 2025 debate, Associate Professor Jamus Lim of the Workers' Party called for decisive wage increases to address stagnant real incomes amid rising costs. He urged stronger National Wages Council guidelines, an increase in civil service wages, and a statutory minimum wage to restore workers’ purchasing power.

https://www.theonlinecitizen.com/2025/02...imum-wage/

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Jamus Lim Urges Wage Hikes, CPF Employer Contribution Boost, and Minimum Wage
 
Source: The Online Citizen, published on 2025-02-25
 
Author: Not specified
 
Article Summary:
 
Theme: Associate Professor Jamus Lim, a Member of Parliament from the Workers’ Party (WP), advocates for significant wage increases in Singapore to address stagnant real incomes and rising costs of living.
 
Core Points:
 
- Lim argues that real wages have not kept pace with inflation and productivity improvements, resulting in a decline in purchasing power for Singaporean workers.
 
- He criticizes the government's use of median income figures, stating that these figures do not accurately reflect the economic realities of households, especially those requiring two earners to make ends meet.
 
- Lim proposes several solutions, including:
 
- Raising civil service wages to set a precedent for private-sector salary expectations.
 
- Strengthening National Wages Council (NWC) guidelines to ensure broader adoption of wage increases.
 
- Restoring CPF employer contributions to a more balanced employer-employee ratio.
 
- Implementing a universal statutory minimum wage to benefit all workers.
 
- He counters concerns about inflation, job losses, and productivity, citing economic research and arguing that higher wages can actually improve productivity.
 
Phenomenon: The article highlights the issue of wage stagnation in Singapore, despite productivity gains and a tight labor market. It also sheds light on the challenges faced by many households in maintaining financial stability, especially in the context of rising costs of living.
 
Additional Insights:
 
- Lim's speech underscores the ongoing debate about income growth and economic equity in Singapore, as policymakers navigate the balance between inflation, business competitiveness, and wage sustainability.
 
- The article provides valuable context to the economic situation in Singapore, highlighting the pressures faced by workers and the need for policy changes to address these challenges.