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Commissioner for Labour Implements Tripartite Cluster for Waste Management’s Recommended Wage Increases and Mandatory Annual Bonus

Employment practices

From 1 July 2023, the Commissioner for Labour will implement recommendations[1]by the Tripartite Cluster for Waste Management (TCWM)[2] for the Waste Collection and Materials Recovery Materials Recovery sub-sectors, comprising (i) a six-year schedule of annual wage increases from 1 July 2023 to 30 June 2029 under the Progressive Wage Model (PWM) and (ii) the implementation of a mandatory annual bonus.

 

Implementation of six-year schedule of annual wage increases and a mandatory annual bonus

 

2 The PWM requirements will be implemented through the National Environment Agency (NEA)’s licensing regimes, and will be applicable to all appointed Public Waste Collectors, licensed General Waste Collectors and licensed General Waste Disposal Facilities.

3 With reference to the recommendations of the TCWM report, the following will be implemented:

  • A six-year schedule of wage increases from 1 July 2023 to 30 June 2029 [3]. The scheduled sustained wage increases reflect a strong tripartite consensus to raise the wages of waste management workers in the Waste Collection and Materials Recovery sub-sectors, while providing service providers and buyers with greater certainty in business and contracting matters.  

     

  • A mandatory annual bonus (“PWM Bonus”), effective from 1 January 2024. The PWM Bonus will be paid out to eligible[4] full-time and part-time resident waste management workers who have worked for the same employer for 12 months. This will enable employers to better attract and retain their workers, and incentivise employers to increase productivity by investing in the training of their workers.

4 For waste management companies that do not comply with PWM requirements, NEA and the Ministry of Manpower (MOM) will conduct investigations and take the necessary enforcement actions. 

5 MOM will complement NEA’s licensing frameworks by leveraging its Work Pass System to ensure compliance with the PWM requirements. Waste management companies will be required to pay the required PWM wages to eligible workers, in order to hire any new foreign workers. 

 

6 For further details on the enhanced wage schedule, the definitions of each job role under the Waste Management PWM, and the PWM, please refer to the reports issued by the TCWM at www.ntuc.org.sg/tripartiteguidelines. Waste management workers with enquiries may call NTUC’s U Care Centre at 1800-255-2828 for more information.

FOOTNOTE

  1. These recommendations were set out in the TCWM’s reports dated 24 January 2022.
  2. The TCWM comprises representatives from the Government, unions, waste management service providers and buyers.
  3. The Commissioner for Labour notes that the TCWM has indicated its intent to review the wage schedule in 2025. Any revision to the wage schedule would be implemented subsequently, upon TCWM’s recommendations and the Government’s acceptance of the recommendations.
  4. To be eligible for the PWM Bonus, employees must not have already received other forms of bonuses amounting to a minimum 1 month of last drawn monthly basic wage (e.g. Performance Bonus or the Annual Wage Supplement “13th month bonus”).