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About 46,000 Retail Workers to benefit from new Retail Progressive Wage Model Recommendations

Employment practices

The Government accepts the Tripartite Cluster for Retail (TCR)’s recommendations on their new Progressive Wage Model (PWM), released on 15 August 2022 (refer to www.ntuc.org.sg/tripartiteguidelines). The recommendations sets a three-year schedule of sustained PWM wage increases from 2022 to 2024, outlines a clear career progression pathway for retail workers, and stipulates the training requirements for retail job roles.  The changes will take effect from 1 September 2022.

 

2        The TCR’s recommendations will benefit about 46,000 resident full-time and part-time retail assistants, cashiers and supervisors, with those at the entry level seeing their monthly wages move up by 18% over the three-year period. These moves will complement the Food Services and Retail Business Revitalisation Package[1] and Retail Industry Transformation Map[2] in developing a future-ready Retail sector that can adapt to shifting trends, technological advancements, and the rapidly changing needs of consumers.

 

Three-Year Schedule of Sustained Wage Increases

 

3        The TCR has recommended a three-year schedule of sustained PWM wage increases, which will take effect from 1 September 2022. This includes additional PWM wage requirements for overtime hours worked in a month.

 

4        From 1 September 2022, the wages of about 14,000 full-time retail assistants and cashiers will be required to be raised to the initial PWM wage level of $1,850. This baseline wage will increase from $1,850 in 2022 to $2,175 in 2024, a growth rate of 18% over the three-year period.

Career Progression Pathway for Retail Sector

 

5        The TCR has proposed a career ladder for the Retail sector, with the first three tiers (Retail Assistant/Cashier, Senior Retail Assistant/Senior Cashier and Assistant Retail Supervisor) subject to mandatory PWM wage requirements. The career ladder will provide workers with a clear progression pathway to higher wages, better skills, and increased job responsibilities. This will enhance the Retail sector’s attractiveness to resident workers.

 

Increased Productivity through Mandatory WSQ Training Requirements

 

6        The TCR has recommended the mandatory training requirements to upskill workers. Each retail worker will need to complete a minimum of one WSQ training module applicable to the job role. The training will help retail workers enhance their competencies and increase their productivity. More details on the implementation of training requirements will be shared in due course.

 

Phased Implementation of Retail PWM and Other Progressive Wage Moves from September 2022

 

7        In addition, the TCR has recommended that the average wage of their workers over a 3-month period be used in assessing if employers fulfil the Retail PWM wage requirements. This arrangement recognises that employers’ revenue and retail workers’ variable wage components such as commissions may fluctuate according to seasonality.

 

8        The implementation of the Retail PWM is part of a broader set of Progressive Wage requirements that will take effect from 1 September 2022. The other moves that have been announced are the new Local Qualifying Salary[3] requirements, and the extension of the PWM to in-house cleaners, security officers, and landscape workers. The various Progressive Wage requirements, including that of existing PWM sectors, will be enforced through employers’ eligibility for work passes from 1 September 2022. Employers that hire foreign workers must adhere to these requirements for their resident workers, failing which they could have their work pass privileges suspended.

 

9        From the first six months from September 2022 to February 2023, MOM will give employers time to adjust and comply with the above Progressive Wage requirements. Instead of enforcement, MOM will focus on educating employers on the various Progressive Wage requirements. Employers who do not comply with the requirements during this transitional period will not have their work pass privileges suspended.

 

10       In addition to the Progressive Wage moves that will take effect on 1 September 2022, the Tripartite Workgroup on Lower-Wage Workers had recommended the expansion of the PWM to the Food Services sector and occupations such as Administrators and Drivers in March 2023. Together with the Progressive Wage Mark accreditation scheme, these moves will cover up to 94% of lower-wage workers by 2023.

 

FOOTNOTE

  1. The $70mil Food Services and Retail Business Revitalisation Package was announced at the Ministry of Trade and Industry’s Committee of Supply 2022. It provides additional support to enable Food Services and Retail enterprises to accelerate their digital and productivity efforts, build capabilities, transform their businesses, and hire and train more local workers. For more information, refer to https://www.mti.gov.sg/COS-2022/Factsheets-on-Key-Announcements
  2. The Retail Industry Transformation Map was launched in September 2016 by the Ministry of Trade and Industry to encourage retailers to adapt and innovate to remain relevant in a competitive marketplace brought on by globalisation and e-commerce. For more information, refer to https://www.mti.gov.sg/en/TMs/Lifestyle/Retail
  3. From 1 September 2022, firms that hire foreign workers will need to pay at least the Local Qualifying Salary to all local employees. The Local Qualifying Salary requirement will be $9/hr in gross wages for part-time employees, and $1,400 gross for full-time employees, with additional requirements for overtime hours worked.

ANNEX

Retail PWM Infographic