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GE 2025: Bridging Higher Workers’ Pay and a Thriving SME Ecosystem

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With Singapore’s General Election 2025 looming, the electorate’s focus locks on two intertwined issues: raising workers’ wages and bolstering the Small and Medium Enterprises (SMEs).

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The People’s Action Party (PAP), Workers’ Party (WP), Progress Singapore Party (PSP), Singapore Democratic Party (SDP), and Red Dot United (RDU) have rolled out competing blueprints to tackle this challenge. Each blueprint takes into account wage hikes with SME support to secure votes.

Let’s examine the winning strategy. It will hinge on which party can best convince voters of a pragmatic plan — delivering financial relief while ensuring SMEs thrive in an ever-changing, unpredictable and complex global market.

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People’s Action Party (PAP): Strengthening PMETs and SMEs

Wage Enhancements

  • Statutory Minimum Wage : PAP proposes implementing a statutory minimum wage of $1,600 per month for full-time Singaporean workers, with a living wage pegged to the Progressive Wage Credit Scheme.
  • CPF Contributions : Increase CPF contributions for better retirement adequacy, including introducing a special account for SkillsFuture Investments.
  • Combat Gender Pay Gap : Introduce measures to enhance transparency in salary structures and combat gender pay disparities.

SME Support

  • Workforce Fairness Act : Strengthen safeguards for fair employment practices, ensuring that companies adopt new technologies responsibly.
  • SkillsFuture Initiatives : Expand upskilling and reskilling programmes through schemes like ComLink+ to support lower-income families and pilot community living models for Persons with Disabilities (PwDs).
  • Job Security : Raise the re-employment age and support older workers through enhanced CPF contributions and co-funded wages.

Key Takeaway : PAP focuses on balancing wage increases with business-friendly policies, aiming to maintain competitiveness while improving worker welfare.

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Workers’ Party (WP): Prioritising Job Security and Flexibility

Wage Enhancements

  • National Minimum Wage: WP advocates for a national minimum wage of $1,200 per month , which would increase take-home pay to $800 per month after CPF deductions.
  • Retrenchment Benefits: Mandate retrenchment benefits for private sector firms with ≥25 employees, regardless of years of service.
  • Flexible Work Arrangements: Introduce flexible work passes for specific industries, requiring evidence of skills transfer.

2. SME Support

  • Abolish Statutory Retirement Age: Encourage longer working lives by removing mandatory retirement barriers.
  • Higher Education Intake : Expand higher education opportunities, lowering the qualifying age for mid-career SkillsFuture support to 39.
  • Support for Caregivers : Enhance parental leave and caregiver financial support, recognising the dual roles many workers play.

Key Takeaway : WP emphasises job security and flexibility, prioritising protections for workers while supporting SMEs through targeted reforms.

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Progress Singapore Party (PSP): Focusing on SMEs and Wage Transparency

Wage Enhancements

  • Minimum Living Wage: PSP proposes a minimum living wage of $2,250 per month, translating to a take-home pay of $1,800 per month after CPF deductions.
  • EP Quota Per Company: Introduce an EP quota system, with higher quotas for SMEs compared to contractors or third-party employers.
  • Legal Exemption for Retrenched Employees: Allow retrenched employees to be exempt from non-compete clauses, promoting job mobility.

SME Support

  • Citizens-First Hiring Policy: Prioritise Singaporeans for jobs, ensuring local talent remains at the core of the workforce.
  • Wellbeing Economy: Commit to job security and decent wages as part of rebuilding the social contract.
  • Strengthen Fair Consideration Framework: Extend advertising periods for Employment Passes when no suitable Singaporean candidates are available.

Key Takeaway: PSP balances wage increases with SME-friendly policies, emphasising fairness and transparency in hiring and wage practices.

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Red Dot United (RDU): A Citizens-First Approach

Wage Enhancements

  • Citizens-First Hiring Policy: RDU prioritizes Singaporeans for jobs, ensuring local talent remains central to the workforce.
  • Decent Wages as Part of the Social Contract: Commit to job security and decent wages as foundational elements of a thriving economy.

SME Support

  • Prioritise Singaporeans for Jobs: Implement a citizens-first hiring policy to support local talent.
  • Wellbeing Economy: Focus on job security and decent wages as part of rebuilding the social contract.

Key Takeaway: RDU emphasises a citizens-first approach, prioritising local talent and decent wages to foster a more equitable economy.

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Additional Insights from PSP and RDU

PSP Proposals

  • Parental Leave: Equalise parental leave for both parents (15 weeks each).
  • Caregiver Support: Provide government-paid allowance for full-time caregivers of Singaporean children below age 7.
  • Family-Friendly Employers: Offer greater incentives for family-friendly employers.
  • Retrenchment Benefits: Ensure statutory retrenchment benefits of at least 2 weeks' salary per year of service for employees with 2+ years of service (with exemptions for small/bankrupt firms).

RDU Proposals

  • Citizens’ Dividend: Unconditional cash transfer for all Singaporeans, starting with the most vulnerable and expanding to all, to provide a reliable income floor and financial security.
  • No Quotas, Levies, or Salary Minimums for Foreign Workers: Emphasise retraining, upskilling, and ensuring workers can seek better opportunities without economic insecurity due to the Citizens’ Dividend.

Comparative Analysis: Which Party Offers the Best Path Forward?

Aspect PAP WP PSP RDU
Wage Enhancements
  • Statutory minimum wage ($1,600/month);
  • CPF contributions for better retirement adequacy
  • National minimum wage ($1,200/month);
  • Retrenchment benefits for private firms
  • Minimum living wage ($2,250/month);
  • EP quota system
  • Citizens-first hiring;
  • Decent wages as part of social contract
SME Support
  • Strengthen Workplace Fairness Act;
  • Expand SkillsFuture initiatives
  • Flexible work passes;
  • Mandate retrenchment benefits
  • EP quota system;
  • Legal exemption for retrenched employees
  • Citizens-first hiring;
  • Wellbeing economy focus

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Building a Resilient Economy for All

The manifestos of GE2025 reflect diverse approaches to bridging higher pay and a thriving SME ecosystem.

While the PAP focuses on balancing wage increases with business-friendly policies, the WP emphasises job security and flexibility.

The PSP places importance on SMEs and wage transparency, while the RDU adopts a citizens-first approach, focusing local talent and decent wages at the forefront.

As voters weigh these proposals, they must consider which vision best aligns with their aspirations for a resilient and equitable economy.

Whether it’s through wage enhancements, SME support, or job security measures, the path forward requires careful consideration of both short-term needs and long-term sustainability.

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