The Government has accepted all 18 recommendations by the Tripartite Workgroup on Lower-Wage Workers on 30 August 2021. These include expanding the Progressive Wage approach and coverage to uplift more local lower-wage workers.
| Key recommendations |
- Expand Sectoral Progressive Wages (PWs) to retail, food services, and waste management
- Extend cleaning, security and landscape Sectoral PWs to in-house local workers
- Introduce Occupational PWs for administrators and drivers
- Introduce requirement where firms employing foreign workers have to pay at least the relevant Sectoral or Occupational PWs to local workers in applicable job roles, and at least the Local Qualifying Salary (LQS) to all other local workers.
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| When they will be implemented |
Sectoral PWs in new sectors:
- Retail from 1 September 2022
- Food services from 1 March 2023
- Waste management from 1 July 2023
Extension of existing cleaning, security and landscape Sectoral PWs to local in-house workers:
Occupational PWs for administrators and drivers:
New LQS requirement (for all other local workers not covered by PWs)
Licensing / registration requirements for cleaning, security, landscape sectoral PWs continue to apply.
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Expand Sectoral PWs
New Sectoral PWs will uplift local employees in the following sectors:
Extend Sectoral PWs to in-house workers
Since 1 September 2022, Sectoral PWs for cleaning, security, and landscape has extended to cover local in-house cleaners, security officers and landscape maintenance workers, beyond the coverage for local workers in licensed or registered firms.
The wages for local in-house workers are subject to changes as recommended by the respective Tripartite Clusters.
Occupational PWs
The Occupational PWs will help to uplift local workers who are in occupations that exist across many sectors.
From 1 March 2023, administrators and drivers will be covered under the Occupational PWs.
Requirements to hire foreign workers
Since 1 September 2022, firms employing foreign workers need to pay and fulfil all the requirements:
- PWs to local workers covered by the relevant Sectoral or Occupational PWs in cleaning, security, landscape maintenance, and retail sectors, and in-house workers covered by the PWM
- At least the LQS to all other local workers
Firms that do not comply with the requirements will not be able to renew existing work passes or apply for new work passes.
The LQS is $1,400 today. The
LQS wage requirement is pro-rated for part-time work and increases for every hour of overtime work.