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25 Oct 2020  (1089 Views) 
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Ministry of Manpower


How to implement minimum wage in Singapore
My friend, who is a retired trade unionist, asked me this question - what are your views about the minimum wage and how much should it be?

I gave him an answer which is "out of the box". Here are my key points:

* The minimum wage should be an hourly rate (and not a monthly rate)
* It should apply to the public sector and for jobs that are partly funded by the govt.
* It should apply to jobs that are now done by foreign workers and should be attractive for locals to do the work - e.g. construction, health care assistant, maintenance, cleaning, teaching assistant
* The minimum wage should be $15 an hour for outdoor work and $12 an hour for indoor work.
*  The workers should be given the flexibility to pick the time slots that they wish to work

 Many workers are now prepared to do delivery and private transport because it provides the flexibility for them to work. If we offer flexibility and a rate of $12 or $15 an hour, it is likely to attract many locals to do the work that are now done by foreign workers.

The minimum wage indicated above should also apply to jobs that are partly funded by the government. For example, locals works in food outlets can be given a minimum wage of $12 an hour with a subsidy of (say) 20% funded by the government.

If the government sets the lead to provide the above minimum wage, it is likely that the private sector employers will follow the lead. In due course, the minimum wage becomes the norm for both the public and private sector.

I hope that my "out of the box" suggestion can provide the path for Singapore to implement the minimum wage - which has eluded the government for a few decades.

Do you like my proposal?

Tan Kin Lian



 


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