Monday, July 02, 2018

Workforce on free lance work

Someone asked me - the world is charging towards freelance work and entrepreneurship to earn a fast buck, is the government relooking at a whole new concept or trend of supporting such a new global change?

I wish to point out the following:

a) There is already a large proportion of the workforce on freelance work for many years - insurance agents, property agents, taxi drivers, contractors, self employed, etc.

b) In Australia, and I suspect many other countries, the workers are paid on a rate per hour, rather than a monthly salary. It reflects the need to have more flexibility for employers and employees.

Singapore has been slow to respond to the changing environment. We are still paying people on monthly salaries. Overtime time is being ignored by many employers, with workers not being able to complain.

It is time for us to move to pay by the hour with a certain guaranteed minimum number of hours each week. Full time workers have a higher guarantee, part time workers a lower guarantee.

The big challenge facing Singapore is the high cost of living and the high commitment towards mortgage payment. It will be difficult for workers to meet the heavy commitments when they do not earn enough and the pay is uncertain.

We need to address this situation. I think that the government should revamp the Central Provident Fund and allow greater flexibility on the withdrawal of the savings to tide over periods of unemployment or under-employment.

They should also allow members to have negative balances, i.e. CPF to provide financing, for up to $50,000 and charge the same rate of interest, i.e. 2.5%. This will reduce the burden of workers who are in financial distress, from relying on banks that charge 24% interest.

I agree that we need to rethink the current practices and change them to meet the changing environment.

Tan Kin Lian

No comments:

Blog Archive