• 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

SDP reviews its minimum wage proposal to S$1,760 a month to protect workers from “unduly low pay”

by S.Ling
30/10/2020
in Community, Labour, Politics
Reading Time: 4 mins read
42

The Singapore Democratic Party (SDP) has proposed a monthly minimum wage of S$1,760 following its policy team’s most recent review of its minimum wage proposal.

This will work out to a minimum wage of S$10 per hour and is calculated based on a 44-hour workweek.

SDP in a statement on Friday (30 October) said that setting a wage floor will protect workers from “unduly low pay”.

The party also proposed coupling the minimum wage with pro-employment policies and social transfers that will better enable low-income workers to obtain a dignified living standard.

Citing research done by Assistant Professor Ng Kok Hoe from the National University of Singapore (NUS)’s Lee Kuan Yew School of Public Policy (LKYPP), SDP said that the proposed minimum wage of S$1,760 would “commensurate with” the amount required for a person aged 55-64 in achieving a basic standard of living in Singapore which is at S$1,721.

“The latest Household Expenditure Survey states that ‘on average, the bottom 20 percent of households are each spending S$2,570 a month while having a monthly income of S$2,235, which include regular government transfers.’

This means a shortfall of S$335 on average each month,” SDP noted.

SDP also estimated that a single person would need a gross pay of S$1606.25 per month — or about S$8 in hourly wages — in order to meet their monthly expenses, assuming that the person makes a 20 per cent CPF contribution.

Minimum wage increases spending power, stimulates domestic consumption: SDP

Challenging the idea that implementing minimum wage could impact businesses adversely, SDP argued that “such views have not been borne out by research” — in fact, the party said, minimum wage practice has shown minimal negative effects on employment.

The spending power of an entire band of income earners could increase as a result of minimum wage, and that may, in turn, consequently stimulate domestic consumption, said the party.

However, to ease the financial burden of business owners, SDP pointed out that the “untenably high” rent — especially of government-owned properties — needs to be reduced and go beyond the temporary relief given during COVID-19 period, as “savings in long-term reductions in rent will compensate increased wage costs”.

“In the final analysis, businesses will not suffer. In fact, they stand to gain from the higher spending power of workers and the improvement in labour productivity as employees enjoy income security. This is a win-win situation for businesses and workers,” the SDP posited.

People’s Action Party (PAP)’s Member of Parliament (MP) Koh Poh Koon on 15 October earlier criticised the Workers’ Party’s proposal of implementing a minimum wage, warning that a minimum wage could worsen current conditions for businesses and workers, in addition to becoming a politicised issue.

Dr Koh also asserted that Government initiatives such as the Progressive Wage Model (PWM) have already helped increase the wages of lower-income workers.

Minimum wage ensures workers in any industry paid a living wage, not just select industries as seen in PWM: SDP

SDP stressed in its policy that the universal minimum wage is a cross-sectoral and national policy which will benefit the employees in other sectors such as food and beverage (F&B) as well as retail and service, as opposed to the current PWM which only covers landscaping, cleaning and security sectors.

“The PWM is a five-level career progression model where workers experience wage growth by completing courses and clocking years of experience.

“Unlike the PWM, the minimum wage will be applied to all low-income workers regardless of the industries they work in,” it noted.

Compared to the PWM, SDP emphasised that the minimum wage ensures that the entrants to any industry are paid a living wage and are not deceived by of an upskilling ladder which is often illusory.

“The PWM allows employers to exploit loopholes such as requiring employees to work extended hours without additional pay.

“The problem is exacerbated where the contract-bidding system often creates a race to the bottom, depressing the wages of workers.

“PWM also abandons those who are unable upskill to earn below a living wage,” the SDP’s policy read.

Furthermore, the Party also called for a Wage Equity Commission to recommend the minimum wage policy to the Government.

Given that the level of minimum wage depends on various factors including the cost of living index and inflation rate, SDP said that the Commission will assess the impact of the policy by taking into consideration economic conditions, living expenses, labour market and its conditions and then adjust the level annually.

SDP also proposed to implement the minimum wage universally to both locals and foreigners, as the minimum wage will encourage the employers to hire Singaporeans rather than migrant workers while preventing local lower-paid workers from being undercut by foreign workers.

“The ultimate goal is to create conditions where Singaporeans including the ones in lower-income jobs are paid wages that allow them to lead dignified, productive, and creative lives,” the SDP noted.

According to SDP, it has been calling for the implementation of the minimum wage since the 1990s.

Previously, SDP had called for a minimum wage of S$5 per hour in its 2001 general election manifesto. It later revised the proposal to S$6.80 per hour in 2010 before updating the figure to S$7 per hour in 2015.

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

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

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?
Asia

Can Malaysia review its current practices on foreign worker management?

07/02/2023
Forum Asia calls for India to revoke arbitrary ban on BBC documentary
Civil Society

Forum Asia calls for India to revoke arbitrary ban on BBC documentary

07/02/2023
AFP

Google to release ChatGPT rival named Bard

07/02/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
42 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Latest posts

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
Forum Asia calls for India to revoke arbitrary ban on BBC documentary

Forum Asia calls for India to revoke arbitrary ban on BBC documentary

07/02/2023

Google to release ChatGPT rival named Bard

07/02/2023
Earthquake kills more than 3,800 in Turkey, Syria

Earthquake kills more than 3,800 in Turkey, Syria

07/02/2023
Leong Mun Wai calls for a reset of housing policies to deliver affordable and accessible HDB flats and protect retirement adequacy

Leong Mun Wai calls for a reset of housing policies to deliver affordable and accessible HDB flats and protect retirement adequacy

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
104

...

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

...

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

...

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
11

...

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

by The Online Citizen
02/02/2023
19

...

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Sep   Nov »

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

wpDiscuz