The Progressive Wage Model (PWM) helps to increase wages of workers through upgrading skills and improving productivity.
What is it?
Under the PWM, employers must:
- Pay at least the PWM wage to eligible workers for their job level.
- Meet the PWM training requirements for eligible workers.
Developed by tripartite committees consisting of unions, employers and the government, the PWM helps to uplift lower-wage workers’ wages. Since implementation, PWM sectors have raised wages at a sustainable and meaningful pace, without hurting the livelihoods of the lower-wage workers.
Workers benefit from clear career pathways with wage growth, training and improvements in productivity and standards. Businesses benefit from higher productivity.
Consumers enjoy better service standards and quality.
Who it covers?
The PWM covers Singapore citizens and Singapore permanent residents working full-time or part-time under a contract of service.
Employers hiring foreign employees on a Work Permit, S Pass or Employment Pass must comply with both of the following requirements to renew existing work passes or apply for new work passes:
- PWM requirements for local employees covered by the respective PWMs
- Local Qualifying Salary (LQS) requirements for all other local employees
PWMs currently in effect
| Sectoral / Occupational PWs | PWM requirements took effect from |
|---|---|
Cleaning sector
|
1 September 2014 1 September 2022 |
Security sector
|
1 September 2016 1 September 2022 |
Landscape sector
|
30 June 2016 1 September 2022 |
| Lift and escalator sector | 1 May 2019 |
| Retail sector | 1 September 2022 |
| Food services sector | 1 March 2023 |
| Occupational PWs for administrators and drivers | 1 March 2023 |
| Waste management sector | 1 July 2023 |
Find out more about the expansion of Progressive Wage approach and coverage.
How it is implemented
| Sector | Regulated by |
|---|---|
|
Licensing condition by NEA |
|
Licensing condition by PLRD (SPF) |
|
Landscape Company Register requirements |
|
Contractor registration requirement by BCA |
|
Requirements to renew or apply for Work Passes |
What can employers do?
If you are an employer, you can tap on the Workfare Skills Support scheme to offset a significant portion of the training costs for your Singaporean employees.
Visit the Business Grants Portal if you want to:
- Apply for support for job redesign
- Raise productivity and build capabilities for sustainable growth
From 2022 to 2026, the Government is co-funding eligible wage increases given to lower-wage workers through the Progressive Wage Credit Scheme. Employers are encouraged to use this period of support to accelerate firm-level productivity improvements.
What can employees do?
If you are an employee covered under the PWM, and not sure if your employer is paying you according to the PWM, you should approach your employer to seek clarification on your wage, occupation and hours of work.
Conclusion
The Progressive Wage Model helps to improve productivity by upgrading workers’ skills. Both employers and employees will need to play a part in this to help uplift the lower-wage workers.
How can Astria help?
If you need assistance with fulfilling your PWM obligations in Singapore, Astria is here to support you. Our HR professionals are experienced in helping you navigate through the various sectoral compliance issues and will work with you to make use of the various government incentives to offset the training costs. At Astria, we are dedicated to provide you with reliable and efficient assistance throughout the process.
To learn more about how we can help you leverage the opportunities in Singapore, contact us today and speak with one of our experts.
At Astria Consulting, we provide end-to-end business setup solutions, including:
- Company Incorporation, Company Secretary and Nominee Services
- Accounting & Tax
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- Let us help you establish your business in Singapore with ease!
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