Update 9 Oct 2021: S$2,906 a ‘reasonable’ starting point for a living wage in Singapore
The “reasonable starting point” for a living wage in Singapore is S$2,906 a month, according to a study by the Lee Kuan Yew School of Public Policy. This figure is based on the average budget for a couple with two children, assuming both parents are employed full-time. The figure is also adjusted for taxes and all universal and major means-tested benefits.
“The median work income among all workers in 2020 exceeded this amount by 50 per cent, but the current PWM (Progressive Wage Model) wages fall significantly below,” said the school in a media release on Friday (Oct 8). The Progressive Wage Model aims to lift the salaries of workers by various sectors through upgrading their skills and improving productivity.
The study found that the costs of education and care “dominated” the budgets for children’s needs. “While some costs associated with children decline with age, others increase sharply. As current measures supporting education and care taper off for older children, parents are likely to face greater financial strain as their children grow up.” Researchers also found that current public housing policies "effectively double” housing costs for single parents who have never married, compared to partnered, widowed or divorced parents.
How can anyone survive on less than $1,300?
A cleaner working at Bugis Junction on Oct 11, 2020.ST PHOTO: DESMOND WEE
The priority should not be to defend the statistics and policies on why there should not be a minimum wage level (WP MPs and NTUC deputy chief spar over minimum wage, Oct 16).
Instead, one should first consider how any one individual or family can survive on less than $1,300 a month when the cost of living in Singapore is notoriously high.
These 32,000 or so full-time workers urgently need help, and should not be tossed around as statistics whenever the topic of minimum wage is raised; $1,300 a month would not solve all their daily needs but it is a good start to give them some hope.
How can anyone survive on less than $1,300 in Singapore?
Dr Ho Ting Fei wrote a letter to ST Forum which was published today asking how can anyone survive on less that $1,300 in today’s Singapore (‘Forum: How can anyone survive on less than $1,300?‘, 21 Oct). With regard to the current debate between PAP and WP MPs on setting a minimum wage in Singapore, Dr Ho said, “The priority should not be to defend the statistics and policies on why there should not be a minimum wage level.” “Instead, one should first consider how any one individual or family can survive on less than $1,300 a month when the cost of living in Singapore is notoriously high,” she added.
She shared that there are currently 32,000 or so full-time workers who urgently need help. They should not be tossed around as statistics whenever the topic of minimum wage is raised, she opined. “$1,300 a month would not solve all their daily needs but it is a good start to give them some hope,” she said. “If we do not lift these 32,000 workers out of the pit of low wages, it is futile to talk about upgrading their skills. If we cannot help them put food on the dinner table or provide for their basic needs, it is futile to talk about increasing productivity.”
She asked the government to be “practical and realistic”. “These are our fellow Singaporeans who are poor and desperate. These are people we should not ignore regardless of the number,” she added. “The question is whether we give them the dignity and respect they deserve.”
WP MPs and NTUC deputy chief spar over minimum wage
Call for universal minimum wage could leave workers and firms worse off: Koh Poh Koon
The Workers' Party's call for a universal minimum wage could leave workers and firms worse off, with the exercise to determine the wage level devolving into a political auction, said NTUC deputy secretary-general Koh Poh Koon yesterday.
A single minimum wage is not a panacea for low-wage workers, he added. Like all other policies, there will be pros and cons, with politicisation one of the big risks, he said.
His remarks come amid growing discussion on the minimum wage and drew rebuttals from WP MPs.
32,000 take home less than WP's proposed $1,300 minimum wage
About 32,000 workers in Singapore take home less than the Workers' Party's (WP) proposed minimum wage of $1,300, NTUC deputy secretary-general Koh Poh Koon told the House. This drew a response from WP MPs, who said its introduction should then not hurt businesses or workers.
Dr Koh had cited the figure to explain that a minimum wage was not necessary. He said the Government's policies, particularly the progressive wage model (PWM) and Workfare Income Supplement, already ensure the majority of low-wage workers take home more than $1,300 a month.
Among the 850,000 workers in occupations traditionally deemed lower income, such as clerical support and service staff and tradesmen, about 100,000 earn below $1,300, figures from the Ministry of Manpower show.
WP chief Pritam Singh calls for universal minimum wage with $1,300 base
Continuing the minimum wage debate, Workers' Party chief Pritam Singh on Monday (Oct 12) called for a universal minimum wage starting at $1,300 per month for Singaporean workers.
In his Facebook post, the Leader of the Opposition wrote that such a move "is not just a moral imperative, it is an act of national solidarity, one that is even more relevant in today's economic environment".
His comments follow an announcement on Sunday (Oct 11) that a workgroup comprising the Government, labour movement and employers will be formed to look into raising the salaries and well-being of low-income workers.
WP's Jamus Lim quizzed by PAP MPs on minimum wage and 'compassionate policymaking'
Sengkang GRC MP Jamus Lim speaking in Parliament on Sept 3, 2020.PHOTO: GOV.SG
Workers' Party (WP) MP Jamus Lim (Sengkang GRC) made several suggestions on minimum wage and compassionate policymaking in his maiden speech in Parliament on Thursday (Sept 3), drawing a string of questions from People's Action Party (PAP) MPs, including Senior Minister Tharman Shanmugaratnam (Jurong GRC).
During the debate on the President's Address, Associate Professor Lim argued, among other things, that many problems faced by segments of the population such as low-wage workers, the elderly and single mothers, could be attributed to "insufficient compassion in our policymaking process".
While he acknowledged that Singapore has a form of minimum wage in the Progressive Wage Model (PWM), he noted that it was not universal and suggested Singapore could implement "a simple, across-the-board minimum wage".
related:
NTUC not only fails to set minimum wage for S’pore workers, it fights constructive opposition suggestions
Yeoh Lam Keong, former GIC Chief Economist
Not only that the National Trades Union Congress (NTUC) has failed to set minimum wage levels for workers in Singapore, it even “fights constructive opposition suggestions for this”, said Mr Yeoh Lam Keong on Thursday (22 Oct), as he indicated it as “entirely baffling”.
Mr Yeoh, former GIC Chief Economist, was commenting on the heated argument between NTUC’s Deputy Secretary-General Koh Poh Koon and the Workers’ Party (WP) leader Pritam Singh in Parliament on last Thursday (15 Oct). To recap, Dr Koh had criticised the WP’s proposal of setting up a universal minimum wage of S$1,300 per month, saying that it could result in a worse situation for businesses and workers, and potentially lead to a “political auction”.
He highlighted that the Government’s current Progressive Wage Model (PWM), and Workfare Income Supplement (WIS) scheme, can help to ensure that low-wage workers earn more than S$1,300 without putting their jobs at risk or raising consumer prices significantly. In response, Mr Singh emphasised that this concern is not with the PWM, but rather on why is the Government taking this long to cover these low-wage workers.
Lam Keong Yeoh Yesterday at 18:23
Well and fairly commented , Lian Chuan Yeoh
In many globally competitive advanced countries like Austria, Germany and Scandinavia, major unions and responsible collective bargaining are instrumental in recommending minimum wage levels which are sustainable by industry. In some countries this is done so well that such minimum wages stick even without compulsory legislation.
It’s entirely baffling to me, therefor, why the NTUC which is perfectly institutionally placed to do so via our well established tripartite process not only fails to do so comprehensively and quickly, but fights constructive opposition suggestions for this, incomplete though they may be, tooth and nail. Surely constructive collaboration and discussion is more appropriate!
In addition, for proper income support for the lowest paid working poor living in absolute poverty, proper studies of the basic needs poverty line for different major family types needs to be done and updated yearly. This too has been resisted equally bafflingly by government.
Jamus Lim clarifies “folksy wisdom” comment
In a forum letter to the Straits Times on Monday (Oct 19), Jamus Lim clarifies his comments referring to the thinking of labour union leaders as “folksy wisdom and beliefs”. After much backlash, in a letter published on Monday (Oct 19), Professor Lim wrote that “Disagreement doesn’t diminish unionists’ work”.
He says his “statement was about the beliefs held by some union leaders on minimum wage, as cited by National Trades Union Congress deputy secretary-general Koh Poh Koon”. “While there is a role for opinion based on personal experience, I maintain that good policy should be formulated on the basis of data-driven empirical evidence. It is important not to conflate the two – that is, using an opinion to refute a study”, Prof Lim wrote.
The MP for Sengkang GRC (Anchorvale) notes that his “disagreement in this instance in no way diminishes my regard for unionists in all these other ways, nor does it take away from my appreciation of their work in the past”.
Jamus Lim says don’t rely on folksy wisdom, the stat says “only” 32,000 workers, so what are we waiting for?
Leaders of individual trade unions in Singapore seldom make noises in public. Usually, their umbrella NTUC big brother, one leg of the tripartite system here, will do all the talking for them. Until Associate Professor Jamus Lim spoke on Thursday October 16 about the wisdom of not relying on the folksy wisdom and beliefs of union leaders. At least two of these allegedly folksy leaders have sprung up from the woodwork to disagree with the Workers’ Party Sengkang GRC MP. Good for them. We need more engagement for better dialogue on every issue, if nothing else but to remind everyone that times have changed and attitudes should too.
In the Parliamentary debate on basic wage, Dr Lim said:
- “With all due respect, as much as it will be lovely to always rely on folksy wisdom and beliefs by labour union leaders, at the same time it’s important to realise that when we talk about studies that show that the minimum wage does not lead to any appreciable increase in unemployment, this is based on careful consideration and not just beliefs.
- “It’s worth reminding ourselves that there was a time in the 16th century when people believed that the sun revolved around the earth. But that belief is not in fact the same as evidence.”
- Evidence from around the world demonstrates that a minimum wage does not cause widespread unemployment, as long as it is not set too high, said Dr Lim.
Two union leaders fired back.
Netizen says Jamus Lim’s “folksy wisdom” remarks detracts Manpower Minister, employers from addressing minimum wage issue
A netizen took to Facebook on Monday (19 October) to highlight that the latest “folksy wisdom” remark made by Workers’ Party’s (WP) Jamus Lim gave the Manpower Minister and employers the chance to avoid addressing the important issue of minimum wage in Singapore. “Jo Teo and employers must be relieved with the brouhaha over Jamus Lim’s ‘folksy wisdom’ remark about minimum wage, which the ST (The Straits Times) is helping to spin,” said Foong Swee Fong.
The 56-year-old kite-surfing instructor added, “For one thing, it takes away the heat they have been getting recently about diminishing the ‘Singapore core’ of businesses with foreign workers”. During a debate in Parliament recently, Mr Lim, along with other members of WP, were part of a heated argument with PAP’s MP for Tampines GRC Koh Poh Koon about minimum wage.
Criticising WP’s proposal of setting up a universal minimum wage of $1,300 could lead to unemployment, Mr Koh argued that the tripartite partners already look at data in their discussions, but the practical considerations of implementing minimum wage may be challenging.
Disagreement doesn't diminish unionists' work
Recently, during the debate in Parliament about the minimum wage, I made the argument that we should not rely on "folksy wisdom" as the basis for policy.
To be clear, my statement was about the beliefs held by some union leaders about the minimum wage, as cited by National Trades Union Congress deputy secretary-general Koh Poh Koon.
While there is a role for opinion based on personal experience, I maintain that good policy should be formulated on the basis of data-driven empirical evidence.
Unions say proposed S$1,300 minimum wage not workable, reject WP MP's ‘folksy wisdom’ remark
The Workers' Party's Assoc Prof Jamus Lim sparked controversy when he referred in Parliament to the views of union leaders as "folksy wisdom and beliefs"
Some union leaders have hit back at the Workers’ Party's (WP) suggestion of setting a universal minimum wage of S$1,300 a month, pointing out that the lowest salaries in some sectors are already above that level.
They also said that remarks by WP’s Associate Professor Jamus Lim in Parliament last week, when he likened the opinions of union leaders to “folksy wisdoms and beliefs”, were uncalled for and unwarranted.
Union leaders with whom TODAY spoke pointed out that leaders in the National Trades Union Congress (NTUC) use data and statistics when formulating policies, along with their knowledge of ground sentiments.
Elderly in Singapore need S$1,379 a month
Elderly in Singapore need S$1,379 a month for basic needs: Study
An older person above 65 years old needs S$1,379 a month to meet his or her basic needs, according to a team of researchers from the Lee Kuan Yew School of Public Policy (LKYPP).
This precise figure came from a study by the team led by Assistant Professor Ng Kok Hoe from LKYPP, National University of Singapore (NUS). They revealed their findings in a media release on Wednesday (May 22).
The household budgets necessary to meet basic needs were S$1,379 per month for single elderly households, S$2,351 per month for elderly couples, and S$1,721 per month for a person aged 55 to 64 years old, the study said.
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COL goes Up, Up, Up!
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Tackling poverty the 'kuih lapis' way
Callings for a Poverty Line
Setting a poverty line may not be helpful
A minimum wage for Singapore?
No homeless,destitute starving people in S'pore:Poverty eradicated
Growing Up With Less
Singapore Is The World’s Most Expensive City
Singapore still the best country for expats
Plight Of The Tissue Peddlers
Have you ever Spoken to a Cardboard Uncle or Aunty?
Singapore’s Story: What comes next
Singapore at 50: From swamp to skyscrapers
Singapore Good Old Times
The Poor & Homeless in Singapore
Support for the Needy and Elderly
The Singapore Story
Other Side of The Singapore Story
Chasing The Singapore Dream
To Be Or Not To Be Singaporeans
Longing for the good old days
Singapore: A Sampan or a Cruise ship?
Singapore at 50: From swamp to skyscrapers
Singapore is ‘World’s Costliest City To Live In’
Coping with Inflation & Cost Of Living
COL goes Up, Up, Up!
Singapore “Swiss” Standard of Living
Tackling poverty the 'kuih lapis' way
Callings for a Poverty Line
Setting a poverty line may not be helpful
A minimum wage for Singapore?
No homeless,destitute starving people in S'pore:Poverty eradicated
Growing Up With Less
Singapore Is The World’s Most Expensive City
Singapore still the best country for expats
