According to DBS, Singapore encounter a descending earnings growth for the fewer income workers

According to DBS Singapore encounter a descending earnings growth for the fewer income workers

August 4, 2022: -Low-income workers are about to encounter the most inferior growth in wages and the most significant increase in household costs as inflation grows, recent research by the biggest lender has shown.

The study indicated that wages for those earning less than 2,500 Singapore dollars a month increased by 2.5% between May 2021 and 2022.

That’s lower than the country’s average consumer price index inflation of 5.2% in the first quarter of 2022.

In contrast, customers earning S$5,000 to S$7,499 had earnings increases of 11.1%, and those paid S$10,000 and above obtained a 13.6% growth in the same period, the report stated.

“Customers earning below S$2,500 are usually elderly residents who have a lower earning capability or workers who are in lower-skilled professions,” said Irvin Seah, senior economist at DBS Group Research.

The study of 1.2 million DBS retail customers showed that despite improvements in wages and employment benefits, the income of nearly half of the respondents failed behind inflation.

Nevertheless, Seah told low-wage earners to accept government financial support, which creates more disposable income for this group of workers.

If the bank included clients’ upward income mobility, which refers to a person’s income progressively growing throughout their life, “then overall income growth for the lower income group would be more favorable at 19.2% year on year,” Seah expressed.

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According to DBS, Singapore encounter a descending earnings growth for the fewer income workers
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According to DBS, Singapore encounter a descending earnings growth for the fewer income workers
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The study of 1.2 million DBS retail customers showed that despite improvements in wages and employment benefits,
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The Women Leaders
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