4 myths about the Progressive Wage Model

 

One favorite grouse is Singapore has no minimum wage to help low wage workers. That’s wrong. The Progressive Wage has an element of Minimum Wage to it, and more – it enforces the progressive increase of a worker’s wage over the years.

 

Myth 1: Minimum wage beats progressive wage

Progressive wage has levels of minimum wage within its framework. Instead of being stuck at one minimum wage forever, you can jump up to the next minimum wage level.

Ladder+cleaner
Myth 2: Progressive wage is only for cleaners and security guards

Progressive wage is a model meant to help all workers climb up career, productivity and skills ladder. Regardless whether you’re a blue or white collar worker, you should be given a chance to achieve higher career aspirations.

wpid-ladder
Myth 3: Without legislation, progressive wage has no teeth

Before legislation, some forward-looking companies are already giving staff the wages that meet or exceed progressive wage recommendations.

These companies also provide training and career opportunities and invest in technology or productivity initiatives to empower their staff.

progressive-wage-scale

Conclusion: Progressive wage model is already being practised in some companies in various industries.

Legislation in a certain industry further ensures ALL companies in that industry adopt the progressive wage model.
Myth 4: Progressive wage takes too long to implement versus a blanket minimum wage

Not true – as reported with the cleaners, the increase of salaries happened instantaneously as evident here:

 

Although there is an element of coaxing of employers, and there is a lot of work to sell the wage model to employers… isn’t the work worth it? Don’t the effects last more long term than just one minimum wage floor? If there was no progressive wage ladder for low wage workers to climb higher and earn more.

Conclusion: Progressive wage ensures workers have a chance at higher wages in future. Minimum wage does not.

 

 

[plinker]

 

 

 

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