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Expansion of Progressive Wage approach and coverage

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.
Read the full report – Progress through Solidarity & Dynamism.
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.
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:

  • From 1 September 2022

Occupational PWs for administrators and drivers:

  • From 1 March 2023

New LQS requirement (for all other local workers not covered by PWs)

  • From 1 September 2022

Licensing / registration requirements for cleaning, security, landscape sectoral PWs continue to apply.

Expand Sectoral PWs

New Sectoral PWs will uplift local employees in the following sectors:

  • Retail from 1 September 2022
  • Food services from 1 March 2023
  • Waste management from 1 July 2023
Read the press releases on PWM recommendations for waste management workers and retail workers.

More information on the upcoming food services PWM will be announced when the Tripartite Cluster for Food releases its recommendations.

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 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 Occupational PWs. Find out more about Occupational PWs.

Requirements to hire foreign workers

Since 1 September 2022, firms employing foreign workers e.g. Work Permit, S Pass or EP holders need to pay

  • 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
    AND
  • 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. Read more about the new LQS requirements, including the wage schedule.