Government to Raise Leave Entitlement For Outsourced Progressive Wage Model Workers From 7 Days to 10 Days

GOVERNMENT TO RAISE LEAVE ENTITLEMENT FOR OUTSOURCED PROGRESSIVE WAGE MODEL WORKERS FROM 7 DAYS TO 10 DAYS

19 July 2026

              The Ministry of Manpower (MOM), in consultation with tripartite partners, will increase the minimum annual leave entitlement for outsourced[1] workers covered by the Progressive Wage Model (PWM) from 7 days to 10 days. This will be implemented in phases from 2029 onwards and will support outsourced workers across five PWM sectors (Cleaning, Security, Landscape, Lift and Escalator and Waste Management). Approximately 60% of outsourced workers[2] in these sectors will benefit from this increase.

Strengthening Leave Entitlements for Outsourced PWM Workers

2            Under the Employment Act, employees are entitled to a minimum of 7 days of annual leave in their first year of service. This increases by one day per year of service with the employer, up to a maximum entitlement of 14 days.

3            However, outsourced PWM workers may not be able to benefit from these leave entitlements due to the nature of their employment arrangements. For instance, when a new service provider is appointed to take over a service contract, outsourced workers may be rehired by the incoming service provider while continuing to work in the same role or location, but their leave entitlement might be reset to the minimum of 7 days as a common employment practice in these sectors. This means that outsourced PWM workers may lose their accumulated leave benefits despite working in the same role continuously for many years.

4            Tripartite partners have agreed to increase the minimum leave entitlement for resident outsourced PWM workers from 7 days to 10 days, to help ensure that such outsourced PWM workers receive leave entitlements that better reflect their continuous years of service, and that their employment conditions remain protected even when their employers change. The new minimum should not affect the annual increase in leave that outsourced employees are currently entitled to under the Employment Act. Workers who already receive leave benefits above this new minimum should continue to receive them, in accordance with their employment terms and the Employment Act.

5            An increase in baseline leave entitlement will support the professionalisation of outsourced PWM sectors, many of which provide essential services, by strengthening retention and service continuity to build a resilient core resident workforce in these sectors.

Phased Implementation from 2029 onwards

6            To give businesses sufficient time to adjust, the increase will be implemented progressively from 2029 onwards. The specific implementation timeline will be further discussed by the respective sectoral Tripartite Clusters. This will allow employers and service-buyers to plan ahead and incorporate the change into their contracts, and better manage the operational and cost impact. Implementation details will be shared closer to the implementation date.

7            MOM will continue to work with tripartite partners to ensure the smooth implementation of the enhanced leave entitlement to improve the well-being of outsourced PWM workers, while supporting businesses through this transition.