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29 October 2020

The Debate on Minimum Wage


With our cost of living notoriously high here, can anyone survive with just $1300 a month or less? The short answer is Yes and No. The long answer: it depends. If you are a foreign worker or student with low expenses, this amount would probably be enough. If you are a local citizen with rising expenses (loans, CPF contribution, medical, insurances, transportation, utilities, GST hikes, etc.), then this amount is definitely not enough. Worst, if you are often sick and have more than one mouth to feed. 

When wage is not pegged to rising living costs, how could any local low-wage workers survive? Yes, you could argue that handouts and subsidies are given out, but these are not regular streams. Today, many employers and hirers are still paying $6/$7 per hour for part-time workers with zero welfare and benefit. One could visualize who would likely take up these low-paying jobs! We have raised the minimum wage for Employment Pass holders but nothing is set for local low-wage workers. The key question is: who should be helped more? 

Unless and until policy-makers acknowledge and owe this issue, no solution is possible. Again, this also depends on their ‘agenda’ and where they stance: pro businesses or pro local low-wage workers?

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