Singapore progressive wage model rules decide the minimum pay a firm must offer in several low-wage jobs, and the pay rises as a worker gains skills. Employers in covered sectors must follow these wage floors and training steps. Buyers who hire cleaners, guards, gardeners or lift technicians through suppliers should know how the rules shape the prices they are quoted.
What the model is
The Progressive Wage Model, or PWM, is a ladder. Each rung is a job level with a wage, a set of skills and a list of duties. A worker who trains and takes on more duties moves up and earns more. Singapore's Ministry of Manpower (MOM) says the wage ladders match workers' skills, productivity and job responsibilities.
The idea began in 2012, when cleaners' pay had stalled. The cleaning sector was the first to get a PWM, and it became mandatory in 2014. Other sectors followed over the next decade. In January 2024, a senior minister of state marked ten years of the model and said progressive wages now reach up to nine in ten lower-wage workers.
Which sectors are covered
By May 2024 the PWM applied to these sectors:
- Cleaning
- Security
- Landscape maintenance
- Lift and escalator maintenance
- Retail, which began in September 2022
- Food services, from March 2023
- Waste management, from July 2023
There are also occupational wage ladders for administrators and drivers. These follow the job, not the sector, so a driver in many industries can be covered.
In September 2022 the cleaning, security and landscape rules also reached in-house workers. Before that they applied only to outsourced staff. A hotel that hires its own cleaners now follows the same wage floors as a cleaning contractor.
How wage floors link to skills
Each sector has a wage schedule by job level. An entry-level worker earns the base floor. To rise, the worker completes accredited training and takes on more complex tasks. A supervisor level pays more than an operator level, for example.
Industry benchmarks and training roadmaps set the standard for each ladder. MOM says the aim is for firms to compete on innovation and productivity, not only on low cost. Unions pushed for upskilling to be a strong part of each ladder.
The wage floors rise in steps over several years. MOM gave the cleaning example: the basic wage for a general cleaner was $1,312 in 2022 and is set to rise by about 85 percent over the schedule. Between 2017 and 2022, workers in cleaning, security and landscape saw 11 percent cumulative real wage growth, which was higher than the median worker.
Who must comply and how to check
A worker falls under a PWM when the job role takes up most of their working time. Employers need to check which role each worker does and record the job level with MOM through the OED portal. For the new sectors in 2022, MOM said the first months focused on education before enforcement.
Workers can check on the Progressive Wage Portal whether their pay matches the rules. Firms that pay progressive wages by choice, where the rules are not yet mandatory, can apply for the Progressive Wage Mark.
Firms that employ foreign workers must also pay local workers at least the Local Qualifying Salary. This floor covers many lower-wage roles outside the PWM sectors.
Help with higher wage costs
The Progressive Wage Credit Scheme, or PWCS, shares the cost of wage rises with employers. For 2022 wage increases, the government co-funded 75 percent of the rise for wages up to $2,500. For wages above $2,500 and up to $3,000, it co-funded 45 percent.
MOM reported that about $1 billion went to 70,000 employers in 2022. That supported wage rises for more than 345,000 employees. The median monthly rise supported was about $300. The scheme was improved in 2023, and the government said it was reviewing it again.
What buyers and suppliers can do
Ask each supplier which PWM ladder and job level applies to the staff on your contract. A bid far below the wage floor is a warning sign. Ask how the supplier plans training, since the ladders reward skills.
Build the scheduled wage rises into multi-year contracts. Agree how price changes will be handled when a floor goes up. Check which support, such as the PWCS, the supplier can claim, and do not assume it covers the whole increase.
Check the current MOM wage schedule for your sector before you sign, because the figures change in steps.