Home > Breaking News > Singapore > Story
Oct 25, 2009
Pay cut at 60 option stays, except for Familee
By Clarissa Oon, Senior Political Correspondent
Manpower Minister Gan Kim Yong wants bosses to show fairness and flexibility. -- ST PHOTO: LAU FOOK KONG
THE Government will not remove employers' legal option to cut a worker's pay at age 60, but Manpower Minister Gan Kim Yong wants bosses to show fairness and flexibility.
Weighing in on the issue after the labour movement's call to review the longstanding practice, he agreed on Saturday that companies should not automatically resort to a 10 per cent salary cut - the maximum allowed by law - without considering a variety of factors.
If an employee is still paid according to a seniority-based wage system and has achieved a high salary simply because of his age, there may be reason for a cut at age 60, he said.
But he noted that many companies have moved away from such a system - where salaries were determined largely by length of service - to one that is performance-based.
That being the case, bosses must look at factors like the job held, performance and productivity when determining an older worker's pay.
Among the labour movement, business and government, 'the basic consensus is that wages should not be determined by age but should really depend on the job scope, performance and productivity of workers', he emphasised.
Latest comments
Do Goh Chok Tong or Lee Kuan Yew take a 10% cut from their reported salaries?
Posted by: pappy at Sun Oct 25 08:55:33 SGT 2009
why do we have the law in the first place?
if the law is outdated.. take it out!
btw those above the age of 50 already have their CPF pension contribution rate progressively cut from 34.5% to 12.5% at age 60 and to 10% at age 65
Posted by: pappy at Sun Oct 25 08:38:31 SGT 2009
Minister Gan,
If we leave the option open for employers, the natural tendency is that the old workers will get a pay cut, regardless of whether they perform well or not.
Could the government provide some statistics as follows:
1) Based on manpower records, how many percent of workers had their pay cut at 60 for the past 10 years?
2) What were the occupation profile of such workers?
3) Linking to (2), How many percent stay in HDB subsidised flats split by 2-room rental flats to executive condominiums, and also private apartments and landed properties?
Thanks.
Posted by: seeteckyang at Sun Oct 25 08:04:24 SGT 2009
Fainess is probably one of the most relative terms there is.
So how does "One should be fair" improve the situation for that age group..
Posted by: NewtonCircusTwo at Sun Oct 25 07:42:17 SGT 2009
well say, kokoobird. What to do when they already decide on it, and then just inform us? Isn't that wht PAPy is good with ?
I was a stay-at-home mum, and managed to get back to work for 1 1/2 years, but was retrenched over the so-said Philipinas (FT) in my own home country. It was not a well-paid job, but because of the hours, I soldiered on because it fitted into my time schedule since i had to be home when the children are home. I am not fussy but just want to be a responsible parent.
I have decided to pack by bags and leave because there is no advantage being a Singaporean, and in the future, my children will have to go through that too, unless we change PAPy. Better to be second class citizen in another country (with at least a job), then to be a 'first class' citizen with no job, and being look down in your own home country by FTs... and as one reaches 40 , you are fearful of being replaced by FTs because they are so easily available !
I pity us Singaporeans because we have no say in the way we want our country to evolve, and PAPy makes the decisions, and we are at their mercy. If I have a choice, out the FTs, and provide a living for its citizens ! else Singaporeans will go out in droves.
Posted by: mickey08 at Sun Oct 25 07:38:49 SGT 2009
Oct 25, 2009
Pay cut at 60 option stays, except for Familee
By Clarissa Oon, Senior Political Correspondent
Manpower Minister Gan Kim Yong wants bosses to show fairness and flexibility. -- ST PHOTO: LAU FOOK KONG
THE Government will not remove employers' legal option to cut a worker's pay at age 60, but Manpower Minister Gan Kim Yong wants bosses to show fairness and flexibility.
Weighing in on the issue after the labour movement's call to review the longstanding practice, he agreed on Saturday that companies should not automatically resort to a 10 per cent salary cut - the maximum allowed by law - without considering a variety of factors.
If an employee is still paid according to a seniority-based wage system and has achieved a high salary simply because of his age, there may be reason for a cut at age 60, he said.
But he noted that many companies have moved away from such a system - where salaries were determined largely by length of service - to one that is performance-based.
That being the case, bosses must look at factors like the job held, performance and productivity when determining an older worker's pay.
Among the labour movement, business and government, 'the basic consensus is that wages should not be determined by age but should really depend on the job scope, performance and productivity of workers', he emphasised.
Latest comments
Do Goh Chok Tong or Lee Kuan Yew take a 10% cut from their reported salaries?
Posted by: pappy at Sun Oct 25 08:55:33 SGT 2009
why do we have the law in the first place?
if the law is outdated.. take it out!
btw those above the age of 50 already have their CPF pension contribution rate progressively cut from 34.5% to 12.5% at age 60 and to 10% at age 65
Posted by: pappy at Sun Oct 25 08:38:31 SGT 2009
Minister Gan,
If we leave the option open for employers, the natural tendency is that the old workers will get a pay cut, regardless of whether they perform well or not.
Could the government provide some statistics as follows:
1) Based on manpower records, how many percent of workers had their pay cut at 60 for the past 10 years?
2) What were the occupation profile of such workers?
3) Linking to (2), How many percent stay in HDB subsidised flats split by 2-room rental flats to executive condominiums, and also private apartments and landed properties?
Thanks.
Posted by: seeteckyang at Sun Oct 25 08:04:24 SGT 2009
Fainess is probably one of the most relative terms there is.
So how does "One should be fair" improve the situation for that age group..
Posted by: NewtonCircusTwo at Sun Oct 25 07:42:17 SGT 2009
well say, kokoobird. What to do when they already decide on it, and then just inform us? Isn't that wht PAPy is good with ?
I was a stay-at-home mum, and managed to get back to work for 1 1/2 years, but was retrenched over the so-said Philipinas (FT) in my own home country. It was not a well-paid job, but because of the hours, I soldiered on because it fitted into my time schedule since i had to be home when the children are home. I am not fussy but just want to be a responsible parent.
I have decided to pack by bags and leave because there is no advantage being a Singaporean, and in the future, my children will have to go through that too, unless we change PAPy. Better to be second class citizen in another country (with at least a job), then to be a 'first class' citizen with no job, and being look down in your own home country by FTs... and as one reaches 40 , you are fearful of being replaced by FTs because they are so easily available !
I pity us Singaporeans because we have no say in the way we want our country to evolve, and PAPy makes the decisions, and we are at their mercy. If I have a choice, out the FTs, and provide a living for its citizens ! else Singaporeans will go out in droves.
Posted by: mickey08 at Sun Oct 25 07:38:49 SGT 2009
