For 159,000 local low-wage workers in Singapore, their wages will go up to at least S$1,400 from 1 Sep.
The Ministry of Manpower (MOM) said in a statement on Wednesday (31 Aug) that these local workers, who aren’t in Progressive Wage Model (PWM) sectors, will have their salaries bumped to at least S$1,400.
The requirement will apply to firms that employ foreign workers.
Currently, workers in the following sectors are covered under the PWM:
Full-time low-wage workers who weren’t in these sectors apparently amounted to 159,000, and will now be paid at least S$1,400.
Local part-time workers must also be paid at least S$9 in gross wages per hour, MOM said.
MOM also announced that in-house workers in these sectors will be paid at least the minimum PWM wage that corresponds to their job roles.
Previously, this only applied to outsourced workers.
About 19,000 full-time retail workers are expected to benefit from the move, said MOM.
Additionally, as announced earlier, retail workers will receive wage increases from today (1 Sep).
Their minimum monthly salary will rise to S$1,850, and more increases are expected in the next two to three years.
The minimum pay for senior cashiers/retail assistants and assistant retail/supervisors will start from S$2,035 and S$2,240 respectively.
To help employers cope with the increased wage costs, the Government introduced the Progressive Wage Credit Scheme (PWCS) during Budget 2022 to help co-fund the wages.
It’ll run from 2022 to 2026.
The Government’s co-funding contribution for wages was increased to the following amounts:
During this period, employers are urged to “accelerate firm-level productivity improvements” to ensure their operations are sustainable in the long run even with the wage increase.
Employers will be given six months to adjust and comply with the changes and will not face enforcement action until Feb 2023. Tripartite partners will educate employers on these requirements.
A total of around 197,000 full-time lower-wage workers will benefit from the changes that kick in today.
The local qualifying salary will also be reviewed regularly so that wages won’t fall below S$1,400.
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