Why $3,000 Should Be the Real Floor for Local Workers — And What It Means for Owner-Directors

There is a persistent myth in our labour market: that locals are "too expensive" for the so-called dirty, low-paying jobs, and that we therefore have no choice but to fill them with foreign workers. Look closely at the actual numbers, and that myth starts to fall apart — and the lesson it holds for business owners is bigger than it first appears.

The true cost of a foreign worker is often close to $3,000

A foreign worker may be paid a basic wage of around $1,600 a month. But in many sectors the basic wage is never the real cost. Once you add dormitory accommodation, meals, transport and the foreign worker levy, the all-in cost to the employer can comfortably approach $3,000 a month. (Exact figures vary by sector, accommodation arrangement and prevailing levy rates, so treat these as illustrative estimates rather than fixed numbers.)

In other words, employers are often already spending in the region of $3,000 to keep one of these roles filled. The question is not whether the work is worth that much — in practice, the market has answered that. The question is who gets to receive it.

CPF makes the comparison even more lopsided

When we compare a foreign worker's package to a local's salary, we are not comparing like with like. A local worker must contribute to CPF. That portion of their pay is not cash in hand — it is set aside for years, sometimes decades, and largely ring-fenced for housing, healthcare and retirement before the worker sees any of it. The headline salary a local is offered therefore overstates what actually lands in their pocket each month.

So when a local is offered, say, $2,000 for one of these jobs, the take-home reality is lower still — while a foreign worker often has housing, food and transport provided on top of their wage. Factor in the wider social costs of relying heavily on imported labour, and $3,000 starts to look less like a generous figure for a local and more like a fair one.

The good news: the government is already moving in this direction

Here is what is often missed in this debate. The government is already closing this gap — just indirectly, through a patchwork of measures rather than a single headline wage. Schemes such as the Workfare Income Supplement (WIS), CDC vouchers and training subsidies all quietly top up the effective income of lower-wage Singaporeans.

The framework exists. It simply needs to be strengthened and pointed deliberately at the goal of reducing joblessness. A few concrete moves would go a long way:

1. Raise WIS for any Singaporean in a full-time role earning below $3,000, so that direct pay plus support reliably clears that mark.

2. Expand CDC vouchers for workers in these jobs, in recognition of their contribution.

3. Involve them in improvement and management processes, so the work carries responsibility and a voice, not just a wage.

4. Build clear progression pathways, so these roles become the start of a career rather than a dead end.

5. Adjust the foreign worker levy upward as more locals step in, so that on cost alone employers come to prefer hiring local.

None of this is radical. It is simply doing more of what already works.

From "dirty" jobs to dignified careers

The deeper opportunity here is not only financial — it is about status. We forget how recent some of our hierarchies are. The chef, today a prestigious and well-paid profession, was once dismissed as hot, dirty, low-level kitchen labour. Over a few decades, that perception was completely transformed.

The same can be done elsewhere. The role we still call a "foreign maid" could be reimagined as a properly trained, properly paid household manager — a profession, not a chore. Lift the pay, the training and the title together, and you change who is willing to do the work.

This is not abstract theory. Many of the most respected business builders in Singapore got their own hands dirty before they led from the top. Any small-business owner who is a director of their own company knows the same truth: you do not sit above the work, you do it. That is precisely the difference between an owner-director and a "professional" director who has never had to — and it is a difference that shows up everywhere, including in how a business handles its own books and compliance.

Not too much to ask

Consider what the state already provides to encourage upskilling. A Singaporean enrolled in a supported full-time course can, depending on the scheme and their circumstances, receive a training allowance — and once you add the value of the subsidised course itself, the total benefit of going back to study can be substantial. (The exact amounts depend on the specific scheme, eligibility and course, so these should be checked against current official figures rather than assumed.)

Against that backdrop, topping up the pay of locals who are actually working — in the jobs we have wrongly labelled dirty and beneath us — to a floor of around $3,000 a month is hardly excessive. The government is arguably already moving this way through WIS and other schemes. The task now is simply to strengthen those measures so that, between direct wages and indirect support, every local in these roles reaches a fair, liveable floor.

Do that, and the "we can't find locals" excuse disappears. So, gradually, does the joblessness it was hiding.

Be the owner-director who does the work

The same principle that should reshape how we value local workers applies to how you run your own company. An owner-director who understands their own accounts, secretarial obligations and compliance is never at the mercy of others — and never caught out by the basics. That is exactly what our WSQ DIY Corporate Compliance course is built to give you: the practical, hands-on ability to do your own company accounts, secretarial filings and compliance essentials with confidence.

If you are a small-business owner or aspiring director who wants to stop sitting above the work and start truly understanding it, explore our upcoming course runs and register your interest today.