Singapore pledges $100m to ease community care wage hikes

The Singapore government is extending around $100 million as financial support to community care organisations (CCOs) to cushion the impact of the upcoming annual remuneration increase for CCO employees.

The financial support is part of the government's acknowledgement of the operational strain caused by increasing the remuneration of CCO employees, according to Health Miniter Minister Ong Ye Kung.

"When we increase staff salaries, the cost of operations increases for the CCOs, so we will be supporting the CCOs," Ong said in a speech on Tuesday. 

"There will be a first tranche of support of around $100 million to help defray the cost of higher salary for our CCOs."

Salary increase for CCO staff

CCOs are organisations that provide long-term care services, with a particular focus on helping seniors live well and age with dignity in the community.

In Ong's speech on Tuesday, he said that the Ministry of Health will be updating salary guidelines for CCO employees, which will increase their total annual remuneration to seven per cent or more.

A total of 23,000 employees in the CCO sector are expected to benefit from the increase, according to the health minister.

"In the next couple of months, we will be issuing the details of the salary guidelines. CCOs will then need to digest them, make their necessary plans, and I think it should be ready for implementation end of this year, or early next year," Ong said.

"So, to all our CCO staff, hope you have some patience. In time to come, all this will be implemented."

The increase in CCO employee remuneration follows the hike in salary packages for other healthcare workers in Singapore, including nurses, pharmacists, allied health professionals, administrative, ancillary, and support staff.

"I hope that with this move, we continue to make healthcare an attractive career in every part of the healthcare system - whether it is in the acute hospital, outpatient, or in a community care setting," Ong said.