Oral Answer to PQ on Training programmes and targeted PWM exemptions for local micro businesses
NOTICE PAPER NO. 3390 OF 2025 FOR THE SITTING ON OR AFTER 5 FEBRUARY 2025 QUESTION NO. 7169 FOR ORAL ANSWER
MP: Ms Carrie Tan
To ask the Minister for Manpower (a) whether there are any manpower training programmes tailored for local micro businesses with less than six employees, such as minimarts, to create real business value to the business owners that offset their increased manpower costs incurred by the Progressive Wage Model (PWM); and (b) whether the Ministry will consider targeted PWM exemptions or adjustments for these micro businesses to help alleviate their business costs.
Answer:
1. The Government recognises that businesses may be concerned about rising costs, including wage increases under the Progressive Wage Model (PWM).
2. The PWM uplifts lower-wage workers through sustainable wage increases, as well as career and training progression pathways to raise their value add to employers. Each PWM job role comes with a list of training modules endorsed by the sectoral Tripartite Cluster. Under Workfare Skills Support (WSS), all employers, including micro businesses, who send eligible lower-wage workers for such training may receive absentee payroll of up to 95% of the trainee’s basic hourly salary, capped at $13 per hour.
3. Besides training their workers, businesses can redesign jobs and transform their business models to improve productivity. For example, they can tap on the NTUC Company Training Committee (CTC) Grant which supports businesses by co-funding their transformation projects to raise productivity, redesign jobs and improve work prospects.
4. To help employers adjust to PWM wage increases, the Government has introduced the Progressive Wage Credit Scheme (PWCS) which co-funds wage increases given to eligible lower-wage workers. Wage increases were co-funded up to 75% in 2022 and 2023, and up to 50% in 2024. For 2025 and 2026, PWCS will co-fund eligible wage increases by 30% and 15% respectively. This helps businesses cope with the impact of improving the wage outcomes of our lower-wage workers over a five-year period.
5. Uplifting lower-wage workers is a whole-of-society effort. Beyond improving wage outcomes, we must also ensure our lower-wage workers continue to be productive in their respective sectors and have meaningful employment through upskilling under the PWM. Businesses must also transform and become more productive, such as through better technology and processes. Employers can tap on the Government measures mentioned to support their business transformation, upskill their workers, and defray wage increases.