Economy after the pandemic Salary subsidy of 50% for one year
I propose that the government provide a salary subsidy of 50% for one year for companies to employ locals into certain jobs that are now being done by foreigners.

The salary should be set at a level that can attract locals into these jobs. The government should specify what the salary level should be.

What happens after one year? Will the employer be able to sustain the salary without continuing government subsidy?

After that, I will leave the terms of employment to market forces. The employer may offer a lower salary to the worker after one year. Or, the employer might be able to maintain the attractive salary, if they are doing well.

If the employer is getting public contracts, such as cleaning and maintenance, the government should set the example by continuing to pay adequate fees for the contract. This will allow the employer to continue with an adequate salary for the workers. 

It may be somewhat challenging in the private sector, such as retail or food and beverage. If the business conditions do not improve, the employer may have to reduce the salary.

It is important for the employer and the local worker to try out the new arrangement for one year. The local worker may find that the work is quite acceptable after all. The employer may find the local worker to be quite good after all.

After a year, they can work out the salary to be mutually satisfactory to both parties.

I believe that the government subsidy of 50% of the salaries for one year could make the difference in changing to a new arrangement, and in getting locals to accept the jobs that are now done by foreign workers.

It may be possible that the government will continue the salary subsidy for the second year at 25% of the total salary. This may give another year for the new arrangement to work well.

Tan Kin Lian




 

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