I’m talking about one Leong Sze Hian and his latest numbers about the Ministry of Manpower.
The Ministry of Manpower announced that the median gross monthly starting salary of ITE graduates in full-time permanent employment increased from $1,217 in 2007 to $1,410 in 2013 (This is an increase of 15.9%).
Here’s what the Leongster said on his blog:
Real pay down last 6 years?
Since inflation was about 24.2% from 2007 (CPI 93.2) to 2013 (CPI 115.8) – does it mean that the real increase was about minus 8.3% or about minus 1.3% per annum?
Less graduates working?
The proportion of fresh graduates who were economically active has decreased from 92.9% in 2007 to 81.7% in 2013.
The proportion of full-time permanent and part-time also decreased from
1.1% to 62.9% and 21.8% to 19.4%, respectively.
So, not only has real pay declined in the last 6 years – the number of those who worked also decreased.
Now, as with anything you find on these armchair economist sites, you have to be wary.
I went to do my own calculations to see if the real salaries are really falling. Here’s the verdict:
Due to higher inflation, the real median salaries for fresh ITE grads in 2013 were lower than the 2007 cohort. In reality though, the situation is becoming better. Truth is: real salaries for fresh ITE grads increased 2.0% over the year from 2012 to 2013.
I also found that the real salaries for post-NS ITE graduates returned to their 2007 levels. The growth in real median gross monthly salary between 2007 and 2013 for these graduates is 0.2%.
In short, all this is a good sign actually.
Well – don’t take my word for it, fish out your calculator, go to the Ministry of Manpower’s website and decide for yourself :)
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