PM Lee: Consumers expect to pay 'a little bit more' as businesses pass down costs of paying lower wage workers more

A gesture of support for lower wage workers.

Zhangxin Zheng | August 29, 2021, 08:26 PM

One of the key announcements made today (Aug.29) at the National Day Rally (NDR) was to increase our longer-term support for lower wage workers (LWWs).

Despite having significant support from the government, efforts to uplift lower wage workers have to go beyond the provision of emergency assistance, Prime Minister Lee Hsien Loong said in his speech.

PM Lee noted that the earnings of such workers have stagnated in many countries.

However, the lives of LWWs have improved as Singapore progressed.

Other support for lower wage workers

In order for the lives of these workers to continue to improve, the cost of higher wages for this group of workers will have to be shared by businesses and consumers, with support from the government, PM Lee said.

Employers will have to bear the cost of reskilling the lower wage workers.

While the government will help companies with transitional support, PM Lee said that some costs are expected to be pass on to the consumers.

PM Lee said,

"So all of us, as consumers, must also chip in...Pay a little bit more for some of our favourite things like bubble tea, bak chor mee, with or without hum (cockles), to help the shop cover higher cleaning and waste collection costs".

This is a gesture of support for lower wage workers, helping them to keep their jobs at higher pay and showing that their work and contribution is valued by the society, Lee added.

Other support for lower wage workers

To help improve their income in the longer term, the government will also mandate companies that hire foreigners to provide all local employees a local qualifying salary which is currently S$1,400.

Previously, companies were required to pay a local qualifying salary to some local employees, depending on the number of foreign workers they hire.

In addition, the public sector has committed to buying goods and services from companies that pay their employees progressive wages only.

A new Progressive Wage Mark (PW Mark) was introduced today and companies that pay fair wages will be accredited with this PW Mark.

Top image via NEA/Facebook