Majority of employers meet the Progressive Wage Model requirements; Action to be taken against non-compliant employers

Today, the Progressive Wage Model (PWM) covers more than 155,000 lower-wage workers across nine sectors and occupations (Annex). For each newly introduced PWM, a 6-month run-in period was implemented to give employers time to adjust to the new requirements, and this has since concluded for all sectors.

2             Following the run-in period, MOM conducted inspections on 4,100 Retail and Food Service firms from April 2023 to March 2024 as a significant number of local full-time workers (87,000) were covered under the newly introduced PWMs. Most employers inspected are compliant with the Progressive Wage Model (PWM) requirements. Some were not familiar with PWM requirements and were initially not compliant but rectified the wages after MOM explained the requirements.

3             However, two errant employers remained non-compliant despite several rounds of engagements by MOM to rectify their workers’ wages. Both employers operate retail shops and were found to have underpaid a total of 12 retail employees about $450 a month per person since April 2023. As such, MOM has suspended the employers from access to apply or renew work passes for foreign workers until they rectify the underpayments.

4          MOM will continue to conduct checks¹ on PWM compliance across sectors and work with the Tripartite Partners and the PWM sectoral leads (Building and Construction Authority, National Environment Agency, National Parks and Singapore Police Force) to educate and help employers meet their PWM requirements, as well as workers on their rightful wages.

Support is available for employers and employees

5          As workers upskill under the PWM, employers benefit from a better skilled and more productive workforce so that wages increase in a sustainable manner. Employers who need help with understanding the PWM can sign up for the Progressive Wages workshops organised by the Singapore National Employer Federation (SNEF) at go.gov.sg/progressivewagesworkshop. These workshops are fully subsidised until August 2024 and have benefitted more than 600 employers. More information on PWM can also be found on MOM’s website at go.gov.sg/pwm.

6          To better support employers in adjusting to the PWM wage increases, eligible employers will automatically receive co-funding support under the Progressive Wage Credit Scheme (PWCS). In 2023, over 70,000 employers received a total of about $1 billion in PWCS co-funding support for PWM wage increases implemented in 2022. This year, the co-funding levels will be raised from 30% to 50%, for wages up to $2,500, and 15% to 30% for wages above $2,500 and up to $3,000.      

7          Employees may log in to the Progressive Wage Portal using their SingPass to check if they are getting the correct wages according to their PWM job level. With the latest improvements to the portal, employees will also be able to check the Workfare Income Supplement (WIS) payouts they have received if they are eligible, and their wages inclusive of their overtime pay. Employees should clarify with their employer if there are any discrepancies. If they need further assistance, they may approach their union or MOM at 6320 7722 or MOM_OED@mom.gov.sg.

8          Employees that require employment assistance such as career coaching or job matching services, may also approach their union or the National Trades Union Congress' e2i (Employment and Employability Institute).