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i think your suggestion is good. But I also think 20% after $2k is also ok
Need to think about company financial burden.
20% after $2k maybe small about but is company have few hundred people that big amount.
What my ideas is to help lower income to have certain amount of money to sustain living and prevent phantom worker( that worker just register in company but never work).
All are paid 20% of 1st $2k salary regardless age. That to reduce phantom worker, if taken out SG worker force will reduce by at least 3% trust me on this.
Company are exploiting the loop hole.