No national minimum wage in our country but some forms of minimum wage are in practice
November 14, 2015 8:24am CST
Singapore has no national minimum wage but some forms of minimum wage are in practice for locals. Both cleaning and security sectors have progressive work model. That means all newbies start at a minimum wage, and as they undergo training, they get higher pay. Nationally there is a rule for companies that want to hire foreign workers. The rule is that the quota for hiring foreign workers is based on local content. The quota differs from industry to industry. In the construction industry, a company has to hire one local in order to hire 7 foreign workers. They have to pay the locals at least S$1000 to count as a full quota. In a way, this sets a kind of minimum wage for full time workers. However, the minimum wage laws do not cover foreign workers or part timers. It is a free market, and the foreign workers know how much they will get before they come here to work. As for the part timers, they have to keep finding jobs that pay a bit higher hourly rate. It is not a problem at all since the norm here is full employment. There are more jobs than workers in a tight labor market.
15 Nov 15
I guess the unemployment rate partly includes freelancers. I have no idea about freelancers, because we are talking about taxi drivers, tutors, part time domestic helper, and other highly-skilled people. As long as they contribute voluntary to the national individual pension scheme or they declare income tax, they will be listed as part of the workfoce. if not, they probably exist under unemployed.
15 Nov 15
@scheng1 Right that makes sense! In Ireland, unemployment rate is measured as the number of people actively looking for work, that is people that registered with the social welfare as unemployed. This number is way lower, they suspect there's more people who's not registered.