MW

Question 1

What is minimum wage?

Answer 1

Minimum wages have been defined as “the minimum amount of remuneration (wage) that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract”

Question 2

Goal

Answer 2

• To protect workers against unduly low pay.
• Help ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection.
• Can also be one element of a policy to overcome poverty and reduce inequality, including those between men and women, by promoting the right to equal remuneration for work of equal value.

Question 3

Shortcoming 1 (R——-)

Answer 3

There is a fear that it would lead to retrenchment– workers going from low wage to no wage.

• • Employers hire lower-cost foreign workers instead
• -Companies have to cut down on staff due to a higher amount of money needed to be paid to staff.

Question 4

Shortcoming 2 (pay more)

Answer 4

Raising the wages of the workers is likely to result in employers passing part of the cost to the consumers

– Singaporeans have to pay more for the goods and services purchased– a higher cost of living

Question 5

Policy considerations

Answer 5

• Minimum wage systems should not be seen or used in isolation but should be designed in a way to supplement and reinforce other social and employment policies. Several types of measures can be used to tackle income and labour market inequality, including pro-employment policies, social transfers, and creating an enabling environment for sustainable enterprises.
• The purpose of a minimum wage, which sets a floor, should also be distinguished from collective bargain