• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

Budget 2013: Real wages will increase? Disposable income drop for some?

by Terry Xu
25/02/2013
in Commentaries, Letters, Opinion
Reading Time: 3 mins read
0

Fear of Films Act no longer valid, says filmmaker Ho Choon Hiong.

By Leong Sze Hian

I refer to the Budget 2013 speech.

Employers will share productivity gains?

The core strategy to increase the real wages of lower-income Singaporeans may be fundamentally flawed, because of the assumption that employers will share most of their productivity gains (even if they are achieved) with workers by increasing their wages.

With rising costs from higher foreign worker levies in some sectors and jobs announced in the Budget, rentals, Certificates of Entitlement (COE), etc, will most employers share most of their productivity gains with workers?

How many times and years have we heard the same story in the Budget, that we will do this and do that and productivity will rise, but it never happen?

Increase foreign worker levies?

With regard to the remarks that since 2010, all the increase in foreign worker levies have been channeled back to help employers and workers, why only channel back the increased portion of the levies, why not some of the rest of the levies too?

By the way, how much do we collect in foreign workers’ levies in a year?

Wage Credit Scheme?

As to “The government will provide more help to businesses to enable them to pay their employees more, with a new Wage Credit Scheme (WCS).

The scheme is part of a three-year Transition Support Package to help companies restructure.

The government will co-fund 40 per cent of wage increases for Singaporean employees over the next three years.

This will also apply to wage increases of those earning up to S$4,000 in gross monthly wage.

The wage credits will automatically be paid out to employers annually.

The scheme will cost the government about S$3.6 billion over three years.

Mr Tharman said the scheme will serve as an incentive for companies to share their productivity gains with workers” (Channel NewsAsia, Feb 25), if you are say an employer who intends to pay a $50 increase to your worker, will you increase the quantum just because of the 40 per cent subsidy, or are you likely to just take it as a bonus from the Government?

And what happens after the three years when the subsidy expires?

So, will most employers increase the quantum of their lower-wage workers’ pay much more because of the WCS?

Increase CPF – less disposable income?

The full restoration of the employee CPF contribution rate to 20 per cent for lower-income workers, may mean a lower disposable income for some workers, and make their lives even harder.

The increase in Medisave contribution for the lower-income self-employed (SEPs) may also have the same adverse impact – those earning an annual net trade income (NTI) of >$6,000 to $12,000 will be raised to half of the full Medisave contribution rate relevant to their age group. The contribution rate for SEPs earning a NTI of >$12,000 to $18,000 will be gradually phased-in until it reaches the full Medisave contribution rate at NTI of $18,000..

Singaporean workers even less competitive now?

The full restoration of the employer CPF contribution rate to 20 per cent, may also make some lower-income Singaporean workers, even more expensive now to hire relative to some foreign workers.

Huge budget surplus again?

With regard to “Instead of the expected balance of S$1.3b (0.4% of GDP), “we now expect higher surplus of S$3.9b (1.1% of GDP),” says Mr Tharman” and an estimated overall budget surplus of 2.4 billion for the next year, why is there a need to raise taxes, like property and vehicle taxes?

This seems to be the same repeat story that budget surpluses invariably always end up to be much higher than estimates, such that we have huge surpluses in about nine out of every 10 years.

If we count the $5.6 billion top-ups to endowment funds, which other countries would not count as expenditure, then the surplus may be even higher at $8 billion.

More progressive tax structure?

With such huge surpluses, a more progressive tax structure need not necessarily mean higher taxes for the higher income or those who stay in higher value homes, as it can also be maintaining the status quo for them, whilst reducing for the less well off.

Also, as the annual value of properties rise in the future, even the middle class may end up paying more taxes in the future.

$600,000 lifetime benefits?

In respect of the $600,000 lifetime benefits in real terms that a lower-income family with two children gets, can we be given the breakdown?

 

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Commemorative coin, exhibitions and various activities to mark 100th anniversary of Lee Kuan Yew’s birth
Singapore

Commemorative coin, exhibitions and various activities to mark 100th anniversary of Lee Kuan Yew’s birth

07/02/2023
国会内庆妇女节 女议员获赠鲜花
Labour

15 companies barred from hiring new foreign employees after serious safety lapse found at worksite

07/02/2023
Why is Gautam Adani’s Indian empire in turmoil?
AFP

India’s Adani Enterprises shares rocket 20%, trading suspended

07/02/2023
China’s Baidu says developing AI chatbot
AFP

China’s Baidu says developing AI chatbot

07/02/2023
Thai rescuers dig to free baby trapped down well
AFP

Thai rescuers dig to free baby trapped down well

07/02/2023
Desmond Lee says 70% of BTO flats affordable for median household with income of S$8,400 but what about the 10th to 40th percentile?
Housing

Desmond Lee says 70% of BTO flats affordable for median household with income of S$8,400 but what about the 10th to 40th percentile?

07/02/2023

Latest posts

Commemorative coin, exhibitions and various activities to mark 100th anniversary of Lee Kuan Yew’s birth

Commemorative coin, exhibitions and various activities to mark 100th anniversary of Lee Kuan Yew’s birth

07/02/2023
国会内庆妇女节 女议员获赠鲜花

15 companies barred from hiring new foreign employees after serious safety lapse found at worksite

07/02/2023
Why is Gautam Adani’s Indian empire in turmoil?

India’s Adani Enterprises shares rocket 20%, trading suspended

07/02/2023
China’s Baidu says developing AI chatbot

China’s Baidu says developing AI chatbot

07/02/2023
Thai rescuers dig to free baby trapped down well

Thai rescuers dig to free baby trapped down well

07/02/2023
Desmond Lee says 70% of BTO flats affordable for median household with income of S$8,400 but what about the 10th to 40th percentile?

Desmond Lee says 70% of BTO flats affordable for median household with income of S$8,400 but what about the 10th to 40th percentile?

07/02/2023
Returning Officer to issue corrective directions, overseas Singaporeans allowed to vote by post, among changes to laws tabled to Parliament

Returning Officer to issue corrective directions, overseas Singaporeans allowed to vote by post, among changes to laws tabled to Parliament

07/02/2023
Can Malaysia review its current practices on foreign worker management?

Can Malaysia review its current practices on foreign worker management?

07/02/2023

Trending posts

Cognizant India transfers staff to work in Singapore as recently as this year

Local IT grads can’t find jobs while engineers constantly transferred from India to work in SG under CECA

by Correspondent
05/02/2023
105

...

They have done a fine job of confusing us about the jobs situation

They have done a fine job of confusing us about the jobs situation

by Augustine Low
01/02/2023
47

...

Adani’s brother runs SG company and registers as director with local ID

Adani’s brother runs SG company and registers as director with local ID

by Correspondent
03/02/2023
26

...

No response from Josephine Teo on whether Mediacorp has been instructed to stop coverage of SMT circulation scandal

No response from Josephine Teo over alleged blackout of coverage by Mediacorp over SMT circulation scandal

by Terry Xu
06/02/2023
12

...

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

by Yee Loon
30/01/2023
25

...

Japanese-Canadian junior high school girl breaks national record with 3km in 9:02 mins

“I want my normal life back,” Sherry Drury withdraws from National Junior High School Tournament due to overheated public attention

by Yee Loon
06/02/2023
3

...

February 2013
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728  
« Jan   Mar »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia