Low salaries due to new immigrants and employment agencies


Singaporeans’ salaries are depressed at 2 levels: (1) Competition from new immigrants, and (2) Recruitment agencies.

Employers need to pay recruitment agencies commissions amounting to 1 – 12 months of the candidates’ salaries hence employers will expect candidates to be lower than market rate and meet 90% – 100% of their stringent requirements.

The hourly rate of part timers has stagnated at $7/ hr for many years. Subsequently, all direct employers budgeted salaries will be based on this lower than market rate.

If you take a look at online job portals, you will find many recruitment agencies serving the same employer and same job opening.

There are more job ads put up by recruitment agencies than direct employers. This will encourage employers to be more picky and stingy in their staff recruitment.


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