Saturday, 5 September 2015

PAP counters Opposition calls for minimum wage

TODAY, 4 Sep 2015

The People’s Action Party (PAP) has countered opposition calls for minimum wage. In a Facebook video post, Minister for Social and Family Development Tan Chuan-Jin explained why the Workfare scheme is better than the minimum wage.

He said minimum wage could have the “inadvertant side effect having some of these Singaporeans lose their jobs” because companies might not be prepared to pay them the wages.

Mr Tan said although “it is a far easier solution” to implement minimum wage, the Government believes that the progressive wage model of Workfare looks after Singaporeans in a better way.

“What Workfare does is help to boost what individuals may be earning, but without imposing that burden on companies that may be worried about their bottom line. This is meant to help individuals, to make sure they remain employable,” said Mr Tan, who was the Manpower Minister from 2014 to May this year.

Workfare supplements the incomes and retirement savings of older Singaporean workers earning up to $1,900 per month, and provides funding support for their training.

Various opposition parties have called for the Government to implement a minimum wage in their General Election campaign.

Every election, some opposition party will ask why we don't have a Minimum Wage in Singapore. The short answer: because we have Workfare, which is even better. Tan Chuan-Jin explains why. - LHL
Posted by Lee Hsien Loong on Friday, September 4, 2015

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