Consider nominal yearly wage increments

It is commendable that the Government has legislated that firms cannot cut the wages of employees when they turn 60 ("Re-employment age cap up from July 2017"; last Saturday).

In addition to this, older workers should be given a nominal yearly increment to keep up with the rising cost of living, as their salaries would have reached the ceiling of their pay scales.

It is futile for the Government to give employers a wage subsidy to re-employ workers if salaries remain stagnant.

These older workers remain healthy and continue to contribute productively at work.

They should not have their medical benefits tweaked or their leave entitlement reduced.

I hope the Tripartite Alliance for Fair and Progressive Employment Practices could look into these practices, thus giving older workers more incentive to continue working.

Tan Keong Boon

A version of this article appeared in the print edition of The Straits Times on April 13, 2016, with the headline 'Consider nominal yearly wage increments'. Subscribe