The Progressive Wage Model (PWM) helps to increase wages of workers through upgrading skills and improving productivity.
What is it
Developed by tripartite committees consisting of unions, employers and the government, the PWM helps to uplift lower-wage workers' wages.
Since being implemented, PWM sectors have raised wages at a sustainable and meaningful pace, without hurting the livelihoods of the lower-wage workers.
The PWM benefits workers by mapping out a clear career pathway for their wages to rise along with training and improvements in productivity and standards.
At the same time, higher productivity improves business profits for employers. Service buyers also enjoy better service standards and quality.
Who it covers
The PWM covers Singapore citizens and Singapore permanent residents (PRs) 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
- LQS requirements for all other local employees
Find out more on how to comply.
PWMs currently in effect
Since 1 September 2022, Progressive Wages (PWs) expanded to cover retail workers, in-house cleaners, security officers and landscape maintenance workers.
Food services PWM and occupational PWs for administrators and drivers have been implemented from March 2023, and waste management PWM from July 2023.
Find out more about the expansion of Progressive Wage approach and coverage.
How it is implemented
The PWM in the cleaning, security, landscape and lift and escalator sectors are regulated by their respective lead sector agencies through:
|Cleaning and Waste Management
||Licensing condition by NEA
||Licensing condition by PLRD (SPF)
||Landscape Company Register requirement by NParks
|Lift and escalator
||Voluntary adoption during contractor registration requirement by BCA
Lift and escalator firms that tender to undertake Government contracts for lift maintenance will have to adopt PWM.
From 1 September 2022, the following are also implemented through employers' eligibility for work passes:
- PWM in the cleaning, security, landscape, and retail sectors
- Extension of the PWM to in-house cleaners, security officers and landscape maintenance employees
- Local Qualifying Salary (LQS) requirement
From September 2022 to February 2023, employers will be given time to adjust and comply to the wage requirements implemented from 1 September 2022. Employers who do not comply with the requirements during this transitional period will not face enforcement action.
From 1 March 2023, the following are also implemented through employers' eligibility for work passes:
- PWM in the food services sectors
- Occupational progressive wages for administrators and drivers
From March 2023 to August 2023, employers will be given time to adjust and comply to the wage requirements implemented from 1 March 2023. Employers who do not comply with the requirements during this transitional period will not face enforcement action.
From 1 July 2023, the following is implemented through NEA’s licensing conditions:
- PWM in the waste management sector (waste collection and materials recovery sub-sectors)
Help for employers
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.
Help for employees
If you are a PWM worker, and are 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.
Should there be disagreements over wages or job classifications, you should approach your unions (if applicable) or MOM for further assistance.