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Government Accepts Recommendations to Implement Progressive Wage Model (PWM) Bonus and Scheduled Increases to PWM Wage Levels for Cleaning Sector

  1. The Government has considered and accepted the recommendations in the addendum to the Tripartite Cluster for Cleaners (TCC)1 report released today. The TCC recommended to implement the Progressive Wage Model (PWM) Bonus for the cleaning sector and scheduled wage increases to the PWM wage levels from 2020 to 2022. These recommendations will benefit over 40,000 resident cleaners who are employed by more than 1,300 cleaning businesses.2
  2. The recommendations in the addendum to the TCC’s report are important steps towards implementing the annual bonus recommendation published in the TCC’s 2016 report on proposed enhancements to the cleaning PWM. The recommended PWM Bonus quantum comprises no less than two weeks of basic monthly wages to be paid out to eligible resident workers from 2020 onwards. This will help uplift workers’ total income levels and their savings, and motivate them to stay with the same employer. Employers will be better able to attract and retain workers, and to invest in their training when there are better retention rates.
  3. The Government also supports the TCC’s recommendation to implement the scheduled 3% annual wage increases to the PWM wage levels from 2020 to 2022, across all three cleaning sub-sectors under the PWM. This will ensure that cleaners enjoy sustained wage growth.

    Implementation Timeline for the PWM Bonus
  4. The TCC’s recommendation to implement the PWM Bonus for eligible resident cleaners will be mandatory for all cleaning businesses licensed under the cleaning business licensing regime via an Order by the Commissioner for Labour.
  5. The Government is providing a lead time of at least a year for the cleaning industry to adopt the new PWM bonus. From 1 January 2020, the Commissioner for Labour will enforce the PWM Bonuses for eligible resident cleaners.

    Implementation Timeline for the 3rd Scheduled 3%Annual Wage Increases
  6. The TCC’s recommendations on the annual adjustments to the PWM from 2020 to 2022 will likewise be implemented for all licensed cleaning businesses via an Order by the Commissioner for Labour for resident cleaners under all contracts from 1 July 2020.
  7. Download the Tripartite Cluster for Cleaners Addendum to the 2016 Report for more information.

FOOTNOTE

  1. The TCC comprises representatives from the Government, unions, cleaning service providers and buyers.
  2. Based on data of licensed cleaning businesses and their employees as at 31 August 2018.