Wages is one of the most important aspects of a job for most workers. It allows them to make a living and live a decent life with their family. Higher wages is always good but how does one achieve that? The answer may well lie in upskilling and being more productive.
What did the ministries have to say about wages at the Committee of Supply Debate this year? We bring you the highlights.
Tax Concerns
The Government has made clear its stand to take a broad-based approach when it comes to the Goods and Services Tax (GST), with a few exemptions. This is done so that the tax remains relatively low and easy to manage.
Second Minister of Finance Lawrence Wong said this in response to NTUC Assistant Secretary-General Ang Hin Kee’s Committee of Supply speech to the Ministry of Finance (MOF).
Mr Ang asked if the Ministry would consider a review or waiver of the GST that is levied on the daily rental of taxis and borne by taxi drivers.
Mr Wong said that the Ministry will do what it can to help taxi and private-hire car drivers better manage their business and regulatory compliance costs.
Mr Ang also asked about the increase in the diesel tax, and what the Government will do to cushion the impact on taxi drivers.
In reply, Mr Wong said there are some measures to help taxi drivers manage the transition. These include the special tax reduction for taxis.
The Government will continue to work with taxi operators to improve the welfare of drivers.
Business Transformation Through Skills Upgrading
It will not be adequate if employers adopt technology without training their workers to use it properly, said Senior Minister of State for Education Chee Hong Tat.
He was responding to NTUC Assistant Secretary-General Zainal Sapari’s speech about efforts to help employers deepen workplace training capabilities.
Enterprise transformation should result in higher profits for the company and higher pay for workers – a win-win outcome, added Mr Chee.
Employers who qualify for the Productivity Solutions Grant can apply for additional training subsidies to cover 70 per cent out-of-pocket training expenses, up to a cap of $10,000.
The subsidy is on top of the existing training subsidies of up to 90 per cent, to provide extra support for companies.
Companies can also work with the National Centre of Excellence for Workplace Learning (NACE) to develop structured training plans for workplace learning.
Uplifting Low-Wage Workers
The Workfare Income Supplement (WIS) Scheme was designed to help older workers who have less runway to upgrade and save for retirement. Younger workers, on the other hand, have greater potential for income growth and can be better supported through upskilling efforts.
This was the response Minister of State for Manpower Zaqy Mohamad gave to NTUC Assistant Secretary-General Zainal Sapari who felt the Government should remove the age differentiation for WIS.
Mr Zainal had also proposed to increase the WIS cash component from 40 per cent to 80 per cent and decrease the CPF component from 60 per cent to 20 per cent. This is to help workers have a higher disposable income.
In reply, Mr Zaqy said that the cash component is today higher than when WIS first started.
Workfare bonuses are generally provided in cash. From 2020, the enhanced Workfare payouts will give workers higher cash payments.
[Read More: The full compilation of Committee of Supply Debates]
