Increase employers' CPF pay-out to boost low-wage workers' pay: Prof Lim Chong Yah
Veteran economist Lim Chong Yah has called on the National Wages Council (NWC) to consider requiring companies to increase their Central Provident Fund (CPF) pay-outs to low-wage workers.
This, rather than a national minimum wage, could be used to raise pay across-the-board for the low-income, said the emeritus professor who two years ago had proposed "shock therapy" to raise wages at the bottom and freeze those at the very top.
"The NWC may wish to look into this compulsory element for raising wages of the low and very low-income earners in our present day circumstances, in lieu of a compulsory national minimum wage scheme," Prof Lim told reporters at the launch of his latest book.
He added that in the past, when the NWC wanted a comprehensive nation-wide implementation of its recommendations to increase or cut wages, it incorporated such a compulsory element. This was usually in the form of a compulsory CPF increase or cut.