Progressive Wage Model (PWM) is the brainchild of Lim Swee Say

Let's understand.

Mr Lim Swee Say designed the PWM because he really cares for the low wage worker. He described it as a 4-in-1 model.

He believes that low wage worker must be paid decent wages and that's the minimum. However, he did not want the minimum wage to stagnate and become the maximum wage for the worker.

He believes that workers CAN upskill and become more productive. He believes that even low wage worker CAN have career progression.

The PWM was birthed out of his convictions.

So you see, the minimum wage has been with us since 2012. It is not a universal or national minimum wage. It is a sectoral minimum. A sectoral min wage is carefully negotiated in consultation with all stakeholders. It is thus not set at an arbitrary level. It is set at a sustainable level without loss of employment.

Please share with others what you learn so that all can better appreciate the amount of efforts made to uplift our low wage workers. The effort is a never-ending one.

Workfare Income Supplement is effectively a negative income tax.

Helping low wage workers...,

Workfare costs the government $850m a year and benefit almost half a million workers.

In 2 years' time, this will be increased to $1.1 billion. This will allow the payout amounts to be raised and the qualifying age for Workfare to be lowered from 35 to 30.

Workfare is effectively a negative income tax.

If you're looking for a minimum wage that pays workers for what their work is worth, it has to be the sectoral minimum wage and not a national minimum wage.

If you're looking for a minimum wage that pays workers for what their work is worth, it has to be the sectoral minimum wage and not a national minimum wage.

A sectoral minimum wage pays a worker according to the skills he/she brings to the sector. This is why different sectors have a different sectoral minimum wage because jobs in different sectors require different skills.

As the sectoral min wage is carefully negotiated by tripartite partners, it is sustainable as it takes into account the interests of all stakeholders .

All these make the PWM superior to a national or universal min wage.

A national minimum wage does not pay workers according to what their work is worth because it has to be kept low in order for it to apply to all sectors without loss of employment.

It is pitched at the lowest level of skills. That's the only way for it to apply to every sector. This means only workers with the lowest level of skills are paid for their work. The rest are underpaid.

The Progressive Wage Model has been with us for many years now.

Since it was implemented for the cleaning sector, it has been expanded to other sectors including landscape, security and lift and escalator sectors. More sectors are included with works in the pipeline.

The PWM is hard work. It does not just end with a model. Tripartite partners continue at it by meeting and updating it, agreeing on wages for subsequent years so that even the minimum wage for particular sectors does not stagnant.

Why all the hard work when you could just settle for a national minimum for everyone and leave it at that? In the words of union leaders, it is a moral obligation.