Singapore to grant $100m support as community care workers set for 7% or more pay hike

The Singapore Government will provide about $100 million in financial support to community care organisations (CCOs) to help offset the impact of planned salary increases for the sector’s workforce, Health Minister Ong Ye Kung announced.

The funding forms part of broader efforts to strengthen the long-term care sector while ensuring providers can manage rising operating costs.

Speaking during his Chinese New Year visit to healthcare institutions, a longstanding Ministry of Health tradition to recognise staff working through public holidays, Ong acknowledged the pressures that wage increases can create for care providers.

“When we increase staff salaries, the cost of operations increases for the CCOs, so we will be supporting the CCOs,” he said, adding that a “first tranche of support of around $100 million” will help defray higher payroll costs.

Salary increase for 23,000 staff

The Ministry of Health will issue updated salary guidelines for about 23,000 employees in community care organisations. The revisions are expected to raise total annual remuneration by 7% or more.

The move follows pay enhancements rolled out in July last year for other major healthcare groups, including nurses, pharmacists, allied health professionals, and support staff.

Ong noted that after those earlier adjustments, CCO employees had asked to be included in similar improvements. He said he met several such workers during a visit to St Luke’s Hospital on the morning of the announcement.

Community care organisations provide long-term care services such as nursing homes, Senior Care Centres and Home Personal Care, services aimed at helping seniors age with dignity in the community.

Additional subsidy support

Alongside wage support, the government will also increase subsidies for long-term care services used by Singaporeans. These enhanced subsidies are scheduled to take effect in July this year.

Officials said detailed salary guidelines will be released in the coming months, after which CCOs will prepare implementation plans. The revised pay structure is expected to take effect by the end of the year or early next year.

Ong urged patience from workers as the changes are rolled out.

“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,” he said.