A Dignity wage proposal for the Singaporean workforce.
I agree that minimum wage law is like using hammer to kill an ant: indeed the ant (problem) will die (solved for now) but the table surface ( economy) will be damaged in long run ( at greater eventual cost): so minimum wage is TOO BLUNT an instrument.
For necessities, gahmen can provide poor (unemployed people) with simple allowance for prescribed activities: e.g. town council cleaner, allowance for attending class/ counselling on $ management/ simple studies : e.g. fast food preparation work, baby sitting, arranging books in library, parking summon auntie work, O- levels, etc.
On wider scale, gahmen should enact law that all companies must pay its Singaporean workforce MORE than foreign workforce on the following terms whereby any deficit shall be payable to SG gahmen and accrue towards a training fund for Singaporeans. (The amts paid however can be refunded back to the company should Singaporean's begin to earn more according to the following rough parameters.
Total eaned by Singaporeans must exceed total salary to foreign employees, PRs to be split into 2 groups, the higher earners being grouped with foreigners for purpose of calculating the 'wage difference levy' payable to gahmen.
The median Singaporean wage must also exceed median for foreigners (PR calculation as a/m): any difference in median wage being multiplied by half the employee population for the calculation of levy payable: e.g.: difference in median wage with 50th percentile foreigner earning $100 more than equivalent in citizen group for company with 50 foreign employees and equal number of local employees= $100 * 50= $5000/ month. (Refundable when company pays Singaporean group more up to total of that PREVIOUSLY paid)(tax deductible as operating costs but taxable as operating profit when refunded) (Non-refunded 'wage difference levy' goes into gahmen income should company deregister itself or after a suitable duration not exceeding 15yrs from first incorporation).
As there might be many methods of calculating the difference in salaries paid, the highest result of all calculations will be the amount payable as 'salary difference' levy.
This will ensure that EVERY COMPANY in Singapore either pays the Singaporean workforce MORE than the foreign employee workforce, or else contributes the difference in tax to the Singapore gahmen. Dignity is defined as being paid more than the equivalent foreigner employee, as such, no minimum wage limit is specified in my proposal.
2¢.
PS: if company employs 70foreigners and 30 Singaporean's, median will be calculated as median of the top 30foreigners (I.e. 15th highest paid foreigner) vs salary level of the 15th Singaporean.
If company hires 30foreigners and 70 Singaporeans, median salary =15th foreigner vs 35th Singaporean.
Every foreigner employed from maid(/construction worker) to banker/ CEO shall pay a standard employment levy of about $400/ month to gahmen . Half of all foreigner headcount levy shall be returned to citizens CPF as e.g. training fund since the employmeny levy is an implicit 'gst' like tax which translates into higher prices for goods and services.
A daily employment levy of $15 plus 33.3% earnings (approx 1.5x Max income tax rate) can be applied to ad hoc foreigner employees not on an annual pay roll (e.g. GE tai singers, performers, specialist consultants etc)
PS: this article was in major part written to counter the PAP's assertion that the 'dignity' of a person is solely determined by his salary scale, even if some/ many CEOs might subscribe to such a view.:
DanielTng said:
I agree that minimum wage law is like using hammer to kill an ant: indeed the ant (problem) will die (solved for now) but the table surface ( economy) will be damaged in long run ( at greater eventual cost): so minimum wage is TOO BLUNT an instrument.
For necessities, gahmen can provide poor (unemployed people) with simple allowance for prescribed activities: e.g. town council cleaner, allowance for attending class/ counselling on $ management/ simple studies : e.g. fast food preparation work, baby sitting, arranging books in library, parking summon auntie work, O- levels, etc.
On wider scale, gahmen should enact law that all companies must pay its Singaporean workforce MORE than foreign workforce on the following terms whereby any deficit shall be payable to SG gahmen and accrue towards a training fund for Singaporeans. (The amts paid however can be refunded back to the company should Singaporean's begin to earn more according to the following rough parameters.
Total eaned by Singaporeans must exceed total salary to foreign employees, PRs to be split into 2 groups, the higher earners being grouped with foreigners for purpose of calculating the 'wage difference levy' payable to gahmen.
The median Singaporean wage must also exceed median for foreigners (PR calculation as a/m): any difference in median wage being multiplied by half the employee population for the calculation of levy payable: e.g.: difference in median wage with 50th percentile foreigner earning $100 more than equivalent in citizen group for company with 50 foreign employees and equal number of local employees= $100 * 50= $5000/ month. (Refundable when company pays Singaporean group more up to total of that PREVIOUSLY paid)(tax deductible as operating costs but taxable as operating profit when refunded) (Non-refunded 'wage difference levy' goes into gahmen income should company deregister itself or after a suitable duration not exceeding 15yrs from first incorporation).
As there might be many methods of calculating the difference in salaries paid, the highest result of all calculations will be the amount payable as 'salary difference' levy.
This will ensure that EVERY COMPANY in Singapore either pays the Singaporean workforce MORE than the foreign employee workforce, or else contributes the difference in tax to the Singapore gahmen. Dignity is defined as being paid more than the equivalent foreigner employee, as such, no minimum wage limit is specified in my proposal.
2¢.
PS: if company employs 70foreigners and 30 Singaporean's, median will be calculated as median of the top 30foreigners (I.e. 15th highest paid foreigner) vs salary level of the 15th Singaporean.
If company hires 30foreigners and 70 Singaporeans, median salary =15th foreigner vs 35th Singaporean.
Every foreigner employed from maid(/construction worker) to banker/ CEO shall pay a standard employment levy of about $400/ month to gahmen . Half of all foreigner headcount levy shall be returned to citizens CPF as e.g. training fund since the employmeny levy is an implicit 'gst' like tax which translates into higher prices for goods and services.
A daily employment levy of $15 plus 33.3% earnings (approx 1.5x Max income tax rate) can be applied to ad hoc foreigner employees not on an annual pay roll (e.g. GE tai singers, performers, specialist consultants etc)
PS: this article was in major part written to counter the PAP's assertion that the 'dignity' of a person is solely determined by his salary scale, even if some/ many CEOs might subscribe to such a view.:
"If the annual salary of the Minister of Information, Communication and Arts is only $500,000, it may pose some problems when he discuss policies with media CEOs who earn millions of dollars because they need not listen to the minister's ideas and proposals. Hence, a reasonable payout will help to maintain a bit of dignity."
- MP Lim Wee Kiak apologises for comments on pay
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