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WHAT IS THE PROGRESSIVE WAGE MODEL AND IS IT BETTER THAN A MINIMUM WAGE? Featured Faculty: Terence Ho Associate Professor in Practice, Lee Kuan Yew School of Public Policy
The issue of a minimum wage has been thrust into the spotlight recently in Singapore, as the country’s first parliamentary opposition pushed for what it described as “a greater injection of compassion and thoughtfulness”. In the opening session of parliament, Workers’ Party Member of Parliament Jamus Lim argued for a minimum wage, saying that it would be achievable because Singaporeans have indicated they might be willing to pay more for essential services and the impact on the workforce would likely be very limited. The government disagrees, and plans to stick with the Progressive Wage Model (PWM) it has implemented over the past decade. Gan Siow Huang, the Minister of State for Manpower, argued that in
the current economic climate, an across-the-board minimum wage could cost jobs. “I think many of our lower paid workers would lose their jobs. And from low wage they become no wage,” she told parliament. But the government and the opposition are not light years apart on this issue. Both agree on the need to increase wages for Singapore’s lowest paid workers, even if they disagree on the methods for doing so.
