5 Observations and 12 Suggestions - Ministry of Manpower’s Latest Report on Singapore’s Gender Pay Gap

Latest MOM Report on Singapore’s Adjusted Gender Pay Gap released on 9 Jan 2020 at 5.00 pm reviews the extent and trends in female participation in the labour market, with a focus on the adjusted gender pay gap. Key Finding is that as at 2018, Singapore’s adjusted gender pay gap (GPG) figure is 6.0%. It has narrowed over time, from 8.8% in 2002. The analysis of Singapore’s GPG showed that the differing representation of men and women in higher/lower paying occupations (i.e. occupational segregation) is a key driver of the gender wage gap, and its role has grown over time. 

Sharing my 5 key observations and 12 Suggestions :

(A) Women in the Labour Market

Women’s share rose across the broad occupational groups, with the largest increase observed among PMETs. However, many women remained in traditionally ‘female’ occupations which are generally lower paying compared to occupations with higher male shares.

(1) Encourage and improve gender diversity across different occupations, and build a more inclusive workplace;

(2) Stronger efforts to ensure PMETs are pre-emptively and adequately trained for in demand jobs and skills, and more support for workers making career switch to higher value-added jobs;

(3) Better career counseling to enable workers to effectively make informed learning and career choices;

(4) More support for individual initiated training to encourage individual ownership of skills development;

(B) Factors Contributing to Gender Pay Gap

After controlling for human capital and labour market factors, adjusted gender pay gap narrowed from 8.8% in 2002 to 6% in 2018. Labour market factors found to have a bigger impact in narrowing GPG, with occupation segregation remains a key driver, and its role has grown over time. Despite adjusted gender pay gap has narrowed over the years, there is an increasing occupational segregation by gender over the years;

(5) Explore ways to reduce occupation segregation to effectively narrow GPG;

(6) Ensure women have access to more diverse job opportunities and higher value-added jobs;

(7) It is also evident that professionals (64%), managers & administrators (60%) and associate professionals & technicians (57%) had higher training participation rate than Clerical (38%), Sales & Service Workers (40%), Production & Transport Operators, Cleaners & Labourers. Therefore, it is important to improve accessibility of training especially with workers with lower pay and prioritise the allocation of resources to those who have the most urgent needs.

(C) Most Significant Factor Contributing to Gender Pay Gap: Occupational Segregation

Occupational segregation, alongside changes in income in favour of occupations with higher male share, had the biggest impact on the gender pay gap. Occupations with higher male share tend to see higher increases in income while majority of occupations with higher female share saw very small increases in income.

(8) Implement fair compensation practices, taking into consideration each employee’s experience, skills, education, performance and provide career development opportunities;

(9) Wage growth must be supported by productivity growth. Continue to innovate and implement productivity initiatives such as redesign jobs, right-skilling the workers and work towards better wages

(D) Discussion of Factors Affecting Occupational Segregation by Gender

Value placed on workplace flexibility and social norms in gender roles within families could influence women’s choice of occupation and their career progression leading on to occupational segregation

(10) Provide opportunity for workers to better balance their work and caregiving responsibilities;

(11) Improve work-family supports such as promoting family friendly workplaces, implementing flexible work arrangements and encouraging shared parenting; and

(E) Other Factors Contributing to Gender Pay Gap

Adjusted gender pay gap of 6% could reflect the effects of parenthood, caregiving responsibilities, un-measured employment characteristics such as work experience, firm type, and job scope, as well as discrimination. Women’s propensity to play the primary role in caregiving and take time off work for parenting is one of the key factors that affect the adjusted gender pay gap;

(12) Continue to monitor the GPG trends – it is important to identify other factors affecting GPG and close the remaining gender gaps by ensuring higher participation and more full-time employment for women.

Attached web-link for full report :

https://stats.mom.gov.sg/Pages/Singapores-Adjusted-Gender-Pay-Gap.aspx?utm_source=ExternalEDM&utm_medium=email&utm_campaign=GPG&utm_content=mrsd