PART IV OF THE EMPLOYMENT ACT

PART IV OF THE EMPLOYMENT ACT:

(Review): 12.

Ms Cham Hui Fong asked the Minister for Manpower whether the Ministry will consider (i) reviewing the salary ceiling of $1,600 for white-collar workers under Part IV of the Employment Act as the salary ceiling was last amended in 1995; and (ii) expanding the scope of the Act to cover junior executives and confidential staff.

The Minister for Manpower (Dr Ng Eng Hen): Mr Speaker, Sir, I agree with Ms Cham that from time to time, the Employment Act would need to be

Column: 714

reviewed. But in any review of the Employment Act, we must take a balanced approach to ensure that Singapore remains competitive and that different concerns of the tripartite partners are addressed. Ms Cham has asked for a review of the salary ceiling and for more groups to be covered under this Act. At the same time, employers have fed back to us that other provisions that they think ought to be reviewed as they try to manage rising wage costs would be overtime and medical leave provisions which are applicable to workmen and other employees covered by Part IV of the Act. Eligibility and levels of retrenchment benefits are also another area of concern to employers. In the spirit of tripartism, MOM will consult with workers, unions and employers to determine which provisions of the Employment Act require a review and what changes would be made.