Wednesday, February 21, 2007

Valuing their labour

A few days ago, I posted my views about the low fertility rate in Singapore.

In today's Today paper, there is an article by Thomas Koshy on "Valuing Their Labour". He suggested that it is better for the government to pay the maternity benefit in full, instead of asking the employer to pay for the first two months. Alternatively, the total cost can be spread across all employers by a levy, (instead of being borne by the current employer).

I agree with this point of view. It is better for the cost of maternity benefit to be borne by the government (through taxes) or by all employers through a levy. This will remove the pressure against female employees having children.

My proposal to raise the fertility rate in Singapore will go one step further. I shall cover it in a separate posting.

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