The debate on the minimum wage vs the progressive wage model has failed to look at the most important statistic?
I refer to the article “Minimum wage vs Progressive Wage Model: Debate over best way to lift pay of low-wage workers” (Straits Times, Oct 30).
It states that “have called for a minimum wage, but the Government has said its Progressive Wage Model works better
Both sides stand firmly by their arguments on the benefits and shortcomings of adopting a minimum wage. The emotive topic has also divided opinion.”
Arguably, the heated debate so far has not touched on what in my view, is the most important statistic to demolish the proponents of the PWM.
According to the Yearbook of Manpower Statistics 2017 – there were 157,500 employed residents with gross monthly income (including employee CPF contribution) less than $1,000.
After deducting the typical 20 per cent employee CPF contribution – does it mean that the take-home disposable income is less than $800?
There were 587,200 employed residents with gross monthly income (including employee CPF contribution) less than $2,000.
After deducting the typical 20 per cent employee CPF contribution – does it mean that the take-home disposable income may be less than $1,600?
886,300 or about 39 per cent of the total resident labour force (886,300 divided by 2,269,700( total)), or about 4 in 10 resident workers, had a gross monthly income less than $2,500 (only about $2,000 less 20% employee CPF) including employee CPF contribution (791,900 workers), or were unemployed (94,400 non-seasonally adjusted) in June 2017.
Leong Sze Hian