EQUAL REMUNERATION FOR MEN AND WOMEN

EQUAL REMUNERATION FOR MEN AND WOMEN

8.

Prof. Thio Li-ann asked the Minister for Manpower (a) what is the nature of the current wage gap between men and women and what steps are being taken to address this; and (b) what are the measures that have been adopted to give effect to Singapore's international obligations under the International Labour Organisation Convention 100 on equal remuneration.

Dr Ng Eng Hen: The attached table provides the 2006 wage data for men and women in various age groups. In 2006, the median gross monthly income(3) for full-time employed female residents was 86% that of males.

Such a pattern is not unique to Singapore. Countries like Norway (85%), Denmark (82%), the United States (76%), Japan (65%) and Canada (64%) also experience a wage disparity between male and female workers.

This disparity reflects remuneration based on factors such as experience, skills and qualifications, and not necessarily gender discrimination. In fact, for Singapore, at the start of their careers, within the age group 25 to 29, females actually earned more than males in three major occupational groups, namely, managers (6.4% more), professionals (2.5% more), and sales and service workers (27% more)(4). After this, however, more women tend to leave the workforce earlier or disrupt their careers for family and other reasons. This affects their length of working experience which can account for the lower salaries for females compared to their male peer cohorts.

If these women choose to return to the workforce in response to a healthy labour market, we may well see the wage gap widen compared to male workers who have been in the workforce for longer.

Singapore ratified the ILO Convention 100 on Equal Remuneration in May 2002. The Convention requires ratifying states to ensure the application of the principle of equal remuneration to all workers by means of either a) national laws or regulations; b) legally established or recognised machinery for wage determination; c) collective agreements between employers and workers; or d) a combination of these various means. In Singapore, after consultation with tripartite partners, we have adopted the approach of fulfilling our obligations under this Convention through collective agreements.

We issued a Tripartite Declaration in 2002 to reiterate and uphold the principle of equal remuneration for work of equal value and the tripartite partners drafted a precedent clause which affirmed this principle. MOM is working closely with the Industrial Arbitration Court (IAC) and our tripartite partners SNEF and NTUC, to encourage companies and unions to implement the principle of equal remuneration by incorporating this clause in their collective agreements.

The principle of equal remuneration is also recognised as a key component of fair employment practices by the Tripartite Alliance for Fair Employment Practices (TAFEP). It has also been incorporated in the Tripartite Guidelines on Fair Employment Practices which was issued by TAFEP on 3rd May 2007.

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** Table: Median Gross Monthly Income of Full-Time Employed Female Residents as a Percentage of Full-Time Employed Male Residents, June 2006 **

** (Exclude NSmen and Contributing Family Workers) **

Age group

|

Percentage (%)

---|---

20 – 29

|

97.5

30 – 39

|

86.0

40 – 49

|

80.0

50 – 59

|

72.5

60 & Over

|

68.1

Total

|

85.7

Source: Labour Force Survey, MOM

Notes:

1. Resident refers to Singapore Citizens and Permanent Residents.

2. Gross monthly income refers to the total amount earned from employment. For employees, this would include wages or salaries, allowances, overtime, commission, tips and bonuses, but exclude employers' CPF contribution. For self-employed, it refers to total receipt from sales and services, less the business expenses incurred.

3. Percentage derived from unrounded estimates.

(3) Source: Labour Force Survey, MOM
(4) Source: Occupational Wage Survey, June 2005, MOM

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