Sunday, February 14, 2010

Minimum wage and cost of a maid

Some people argued for a minimum wage to be implemented in Singapore. REX argued against it, stating that the cost of a maid would increase to $1,500 a month, if a minimum wage is applied here.

I do not think that a minimum wage need to be as high as suggested by REX. It could be set at $1,000. If we consider the wages, government levy, food and lodging provided to a maid, most employers are already paying close to $1,000 a month.

If we pay a higher wage for a maid, we will get a better quality maid, which may be better in the long run. There is also a high cost in replacing a maid. Under the current system, many employers have to replace the maid quite often and suffer this additional cost.

We should not allow the higher cost of employing a maid affect our thinking towards paying a decent wage to other workers in Singapore who need to earn enough to pay for the high cost of living in Singapore.