PEGGING WAGES TO COSTS
MP Gerald Giam (WP – Aljunied) requested in a supplementary query if it will be higher to peg the bottom wage for native employees to the common family expenditure on fundamental wants, which can also be S$1,400.
“It will enable the minimal wage to rise in tandem with value will increase in order that the low wage employees is not going to lose out over time,” he stated.
Mr Zaqy replied that the ministry takes steerage for progressive wages from the Nationwide Wages Council as a result of they need to be sustainable and “not open to political public sale”. The council does have a look at information projections, together with inflation and its impression on the price of residing, he stated.
“These are fairly advanced issues in which we have to give assurance not simply to the employees however to the employers and the customers at massive to create a good system,” he stated.
To NCMP Hazel Poa’s (PSP) query on whether or not the LQS requirement will “spell the tip of part-time employment”, Mr Zaqy clarified that there’s additionally a price for part-timers of S$9 an hour and this offers “some flexibility” for part-time employees.
MP Jessica Tan (PAP – East Coast) requested how the Authorities can be certain that the LQS of S$1,400 doesn’t grow to be the utmost wage for native employees in companies that rent overseas employees.
Mr Zaqy stated that PWM would be the essential driver of wage progress within the years forward and it has proven good ends in the sectors that it has been carried out comparable to cleansing and panorama sectors.
Wage benchmarks in occupational PWMs may even assist to push up wages additional and it will “drive market forces” to lift wages.
To a clarification from MP Edward Chia (PAP – Holland-Bukit Timah) on the hyperlink between productiveness and upskilling of employees, Mr Zaqy stated that the “narrative” on productiveness beneficial properties has shifted.
“The strategy to date with PWM has been that the employee has to upskill to enhance productiveness. And subsequently you justify productiveness beneficial properties in opposition to wage beneficial properties,” he stated. “However I believe shifting ahead, we even have to consider productiveness beneficial properties very in another way.”
Utilizing the instance of the safety business, he stated that there’s a restrict to how a lot every employee’s productiveness could be improved by coaching, whereas many companies have now improved productiveness by utilizing know-how.
“So there may be the worker-level productiveness as you prepare and upskill him, however there may be additionally that degree of productiveness you could get when companies take the time to remodel, do job redesigns,” he stated.