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Government Accepts Recommendations to Enhance Progressive Wage Model for Security Industry and Remove Overtime Exemption

Employment practices
  1. The Government has considered and accepted the recommendations contained in the report of the Security Tripartite Cluster (STC) released today. The report recommended enhancements to the Progressive Wage Model (PWM) for the security industry, and the removal of overtime exemption (OTE) from 2021. The Government concurs with the STC’s views that these recommendations will enhance the professionalism and attractiveness of the security industry and support the provision of more manpower-efficient and technology-enabled security services. They will benefit over 34,000 security officers employed by more than 240 security agencies.
  2. The STC’s recommended PWM wage schedules will help security officers enjoy sustainable wage growth, and help ensure that most security officers would not experience a fall in gross wages when OTE is removed. The PWM wage schedules will also provide security service providers and buyers with greater clarity on labour costs when planning for multi-year service contracts. With effect from 1 January 2019, the recommended PWM wage schedules will be implemented under the existing licensing requirement for all security agencies to pay security officers according to their ranks with the requisite training.
  3. The STC’s recommendation to encourage employers to adopt the min-max ratios to reward deserving employees, will also motivate security officers to upgrade their skills and enhance their performance.
  4. The STC has recommended to remove OTE with effect from 1 January 2021. With the smooth implementation of the PWM last year, the Government supports this next step by the industry to further improve the working conditions of security officers. The lead time of three years will allow the industry to transform its operations, and adjust work patterns. Thereafter, all exemptions will be issued on a case-by-case basis only to meet short-term needs, subject to assessment by the Ministry of Manpower.
  5. As a service buyer, the Government welcomes the STC’s move to provide better visibility of the wage progression for security officers over the next six years. When the new PWM wage schedules take effect from 1 January 2019, they will similarly take effect for all Government contracts for security services.
  6. The Security Tripartite Cluster Report is available online.