pwm & mw

Question 1

minimum wage

Answer 1

minimum amount of remuneration 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

purpose of mw

Answer 2

• protect workers against unduly low pay
• ensure a just & equitable share of fruits of progress to all
• overcome poverty, reduce inequality

Question 3

effectiveness of mw

Answer 3

• coverage: afford protection to all workers
• level: cover needs of workers and their families
• compliance: employers comply with mw regulations

Question 4

wage inequality

Answer 4

the uneven income distribution throughout a population, due to factors such as gender, race and age

Question 5

low wage workers

Answer 5

workers whose wages are insufficient to support their cost of living, and monthly income is not more than $2300 according to the Workfare Income Supplement (WIS) Scheme

Question 6

progressive wage model

Answer 6

helps to increase wages of workers through upgrading skills and improving productivity, implemented via government levers in the cleaning, security and landscape sectors
(for SG citizens and PRs)

Question 7

workfare skills support (WSS) scheme

Answer 7

receive training allowance and cash reward for completing training

Question 8

workfare income supplement (WIS) scheme

Answer 8

payouts in the form: 40% cash payment, 60% CPF contributions

Question 9

minimum wage portion of pwm

Answer 9

minimum monthly salary that employers have to pay employees covered by PWM

Question 10

pwm vs mw

Answer 10

1. scope
   mw covers all business whether employers can afford or not, while pwm is only implemented in cleaning, security and landscaping sectors
2. type of wage
   mw refers to take-home pay, while pwm refers to basic wage, meaning employees take-home 5-20% less than stated figure

Question 11

strengths and limitations of mw and pwm

Answer 11

mw
- s: all sgreans earn a decent living wage
- l: might cause LWW to lose job, no incentive to be productive, min wage becomes max wage, increase cost of living
pwm
- s: increase wages of workers in 3 sectors, while increasing productivity, no risk of losing job
- l: only 3 sectors implemented, still many LWW whose income cannot support basic standard of living