I was shocked to find out that the minimum annual leave entitlement in Singapore is just 7 days. That seems painfully little but it’s a reality for almost 10 per cent of full-time resident employees here.
The issue was in the news recently when it was raised in Parliament by Mr Louis Ng, MP for Nee Soon GRC. Senior Minister of State for Manpower Koh Poh Koon responded to Mr Ng’s enquiry by stating that there are currently no plans to review that figure.
He emphasised that while the Employment Act sets a minimum annual leave entitlement of 1 week, the figure increases by 1 day for every year of employment with the same company. As a result, more than 90 per cent of full-time resident employees aged 25 to 64 enjoyed more than 1 week of annual leave in 2022.
The Senior Minister went on to explain that the government is reluctant to mandate increased leave because of the impact it would have on business costs.
While many analysts may disagree, there is merit to the government’s position as real-world developments in California just this week show. On 1 Apr 2024, the U.S. state enacted a law titled AB 1228 that increases the minimum wage for fast food workers to US$20 an hour (!).
It may have been well-intentioned but is playing out more like an awful April Fool’s Day joke. Experts have warned that it will lead to higher prices for consumers, restaurant closures, job losses, fewer hours of employment, and automation that will kill jobs.
That isn’t speculation – Pizza Hut in California immediately laid off over 1,200 delivery drivers in response to the law.
Companies will also accelerate the shift to automation, resulting in even more job losses. That is evident in Singapore already – we can already see an increasing number of self-service order kiosks in fast food restaurants.
If the government mandates an increase in the minimum number of days of annual leave, companies will likely move to replace blue collar workers with machines. It’s already happening with the use of AI for certain white collar work.
The crux of the issue is finding a balance between profit and worker care. Most of us would strenuously disagree with the suggestion we get too much annual leave… but we would rather have a job than be made redundant.
So, what’s a reasonable alternative and how do we strike a fair balance to avoid the California debacle? Send your suggestions to the minister. And to Seth so I can get more time off. Thenks.
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