Approximately 197,000 full-time lower-wage workers in Singapore will benefit from new Progressive Wage moves.

These new moves include the new Local Qualifying Salary requirement, and the introduction of the Progressive Wage Model for retail workers, as well as for in-house cleaners, security officers and landscape workers.

Including workers in the cleaning, security, landscape, and lift & escalator sectors, a total of 221,000 full-time lower-wage workers are expected to benefit from these Progressive Wage moves.

The Ministry of Manpower defines lower-wage workers as full-time resident employees earning a gross monthly income from work [excluding employer Central Provident Fund (CPF) contributions] up to and including the 20th percentile income level of full-time employed residents (excluding employer CPF contributions), which was SGD 2,200 (USD 1,565) in June 2021.

The moves, which came into effect on 1 September, are part of the broader set of Progressive Wage moves announced by the Tripartite Workgroup on Lower-Wage Workers last year. 

The tripartite partners include the Ministry, the National Trades Union Congress (NTUC) and Singapore National Employers Federation (SNEF).

Meanwhile, firms that employ foreign workers must pay all their full-time local workers at least the Local Qualifying Salary of SGD 1,400 (USD 996).

A total of 159,000 full-time lower-wage workers who are not in Progressive Wage Model sectors will benefit from this new Local Qualifying Salary requirement and will be assured that their wages will not fall below SGD 1,400. Part-time local workers will also benefit from this new Local Qualifying Salary requirement, as they will need to be paid at least SGD 9 (USD 6.41) in gross wages per hour. 

During the first six months, from September 2022 to February 2023, tripartite partners will focus on educating employers on the various Progressive Wage requirements. Employers will be given time to adjust and comply. Employers who do not comply with the requirements during this transitional period will not face enforcement action.

To support employers as they adjust to the Progressive Wage requirements, Singapore’s government is co-funding the wage increases given to lower-wage workers through the Progressive Wage Credit Scheme. The Scheme will run from 2022 to 2026.

“To foster a more inclusive society and ensure no worker is left behind, the government will continue to build on tripartite efforts to uplift lower-wage workers,” The Ministry stated. “The Progressive Wage Mark, which recognises eligible firms that pay Progressive Wages, will be launched by end 2022.”