Defining Value Added Productivity (VAP)

The labour productivity figures published by the Singapore Department of Statistics (DOS) as well as the productivity indicator adopted by the ESC (Economic Strategies Committee) as benchmark are measured in terms of value-added per employee (or VAP). VAP can be defined as the wealth created by a firm or an industry per employee. At firm level, the VAP can be estimated using the formula below:

Value Added Productivity (VA per employee)


Firm’s Value Added ($)

Total number of employees on firm’s payroll

Value Added Productivity (VAP) Calculator

(calculate your firm's VAP here)

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