MINIMUM WAGE SYSTEM GOVERNMENT
Singapore - Although Singapore is now the only country in Asia-Pacific (APAC), besides Brunei, without any form of minimum wage laws, it may not be necessary to introducing such a regulation here.
The recent announcement of the minimum wage legislation passed in Hong Kong might not affect companies in Singapore because they might not face the same issue. A union leader from Singapore Insurance Employees' Union (SIEU), who declined to be named, said, "The implementation of a minimum wage system would not be aligned with the government policies."
"The implementation of a minimum wage system would not be aligned with the government policies, he explains.
Roland Ruiz, ASEAN business leader for Mercer's Human Capital business, feels that having a minimum wage regulation would require the government to think about some issues. The country would have to strike a balance between "providing a safety net for workers who are unable to earn above the minimum standard of living and ensuring the labour market remains responsive to the changing demands."
Having minimal wage laws may not be a pressing issue for Singapore at this point of time because the legislation may not be the answer for better employees' welfare, said the union leader. There are various governmental policies that would constitute a fair wage system for Singaporeans, he adds.
Additionally, Ruiz said even if a system like that is implemented in Singapore, it does not have to be mandatory across all sectors.
The government has other ways to control wage costs, taking Singaporeans' welfare into consideration, said the SIEU leader. He commented that Singapore's employees would be paid according to market rates even though the country does not impose a minimum wage system.
The Legislative Council of Hong Kong passed the Minimum Wage Ordinance on July 17. The law aims to establish an optimal constitutional minimum hourly wage system to prevent excessive low wages among workers. The legislation will take labour market flexibility, economic growth and competitiveness into consideration and minimise the possibility of causing significant loss in low-paid jobs. The initial recommended minimum wage has been estimated to take place in the first half of 2011.
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