Minimum Wage = Minimum Increment of S$50? Not even enough to cover Inflation


The National Trade Union Congress (NTUC) has proposed to the National Wages Council (NWC) that workers be given a minimum dollar amount as an increment to their basic pay, instead of a one-off payment.
Sources told The Straits Times that the amount should also be enough to offset the impact of inflation for low-wage workers.
It is believed that the amount will be higher than the inflation faced by a worker earning less than $1,000 a month.
This comes amid a drive by the Government and NTUC to raise low-income workers’ wages, especially those working in the cleaning and security industries.
The proposal stems from NTUC’s preference for low-wage workers to get a pay rise based on a fixed dollar amount, instead of calculating it as a percentage of their pay.
Current guidelines issued by NWC state that increments have two parts: a fixed amount and a percentage increase.
It does not specify what that fixed amount should be.
The Straits Times said that there was no immediate objection to the idea from employer representatives on the council when it was first tabled at NWC meetings.
Member of Parliament for Bishan-Toa Payoh GRC Mr Zainudin Nordin said he welcomed the idea of an ‘inflation plus’ model as it will help low-wage workers who are worried about the cost of living.
An employer in the security industry said the bigger pay packet will attract better workers and improve the image of the industry.
However, he cautioned that employers should not suppress wages by going for the cheapest bid when buying certain services.
A UniSIM academic told The Straits Times that fixed pay rises could reduce flexibility in the labour market and be counterproductive as it will not prevent employers from laying off workers who are relatively too costly.
It also only benefits employed workers.
A more viable solution would be for employers to ensure that low-wage workers improve their skills and productivity at the same time, he said.
paullim@sph.com.sg
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To offset inflation, I bet the minimum amount as an increment will be so small nobody will bat an eyelid, if you need to increase productivity to answer for minimum higher wages, let those workers from the cleaning and security industry undergo a course to be eligible for higher wages, and the wages must be a percentage increase, let’s say if the worker’s pay is S$600, the employer will pay the same salary, but the government can foot the bill by increasing $0.50 for every dollar paid out by the employee, increasing the salary by 50% to S$900, that is the lowest possible scenerio the rate of increase will have an impact on inflation, without requiring employers to foot the increase, where those of a higher income bracket will not be adversely affected, as the compensation is industry specific based on productivity increases, other part-time jobs or low income could easily be set at a minimum rate of $8 per hour, as the exposure from these jobs are not many.
This can be a temporary scheme of 3-5 years to limit the exposure, until when the global economy recovers, it will be permanent, then the government can pass the responsibilities to the employers, where there is a justified real increase of wages. 
Example of Goals;
Minimum wage must be sufficient to offset inflation
Minimum wage must feature productivity increases
Minimum wage must be industry specific to limit inflation exposure
Minimum wage must only be a short-term fix
Employers must take over when economy recovers and the increase is justified
Therefore Government exposure is limited
– Contributed by Oogle.

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Multiple OS, Security, Data & Internet , Interests include AI and Big Data, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader. I am capable of finding any answers in the world you want as long as there are reports available online for me to do my own research to bring you closest to all the unsolved mysteries in this world, because I can find all the paths to the Truth, and what the Future holds. All I need is to observe, test and probe to research on anything I want, what you need to do will take months to achieve, all I need is a few hours.​

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