Enable Group | Sep 19, 2020
Blog, For Employers, For Employees ● 2 min read
3 weeks ago, when the Ministry of Manpower announced its implementation of an enhanced minimum wage for foreign workers across the sectors, there was a mix of reactions on whether this is the solution for the Singapore workforce.
The textbook definition of minimum wages is explained with “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed”. Source
But what give rise to such a concept and what are its benefits and disadvantages?
Here are a few points to understand on this subject
The purpose of minimum wage is to prevent employees from being exploited by employers. This act serves to ensure that the workers are adequately provided for to afford livelihood. Without such an act it may allow employers to have an unfair advantage during salary negotiations.
That’s right. Not all types of employments are covered under minimum wages. In fact, under the Singapore’s Employment Act there are several categories which are explicitly singled out which are not covered;
The argument of placing minimum wage is largely hinged on the effects of the employees having a better condition to their lives which in turn should allow them to provide better services to their employers and have a further output of the company’s product & services.
The reverse can also be true that if the conditions are not favourable for the employees they may leave the company easily or perform below their capabilities.
In most countries, implementation of a minimum wage is an unfunded mandate which the employers will have to shouldered themselves and it starts the motion of higher outsourcing elsewhere that has cheaper labour. In turn it could lead to lower local employment and higher local poverty.
Established in 2013, enable Consulting is a specialised HR solutions provider for small and medium-sized enterprises.
We believe that having a strong and robust HR function is a key driver for continuous growth in any successful business. It is on this belief that we have built many successful partnerships with clients across different industries.
We are a people business and it is our talent pool that defines us. Each and every one of our consultants is highly professional with many years of experience in HR management and services.
Our Consultants are PMC certified to further be able to help local SMEs improve and optimise their HR operational efficiency through Singapore Grants. enable is about offering affordable, high value adding solutions to improve business performance; while at the same time nurturing and inspiring a fair and respectful working environment. But above all, enable is about enabling you.
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