Singapore is one of the few countries in the world that does not have a universal minimum wage law. However, this does not mean that workers in Singapore are paid unfairly or exploited by employers. In fact, Singapore has a system called the Progressive Wage Model (PWM) that sets minimum wages for certain sectors and encourages workers to upgrade their skills and productivity.
In this blog post, we will explain what the PWM is, how it works, who is covered by it, and what are the minimum wages per hour for different sectors in Singapore.
What is the Progressive Wage Model (PWM)?
The PWM is a wage ladder that links wages to skills, productivity and career progression. It was introduced by the government in 2012 to address the issue of low wages and wage stagnation in some sectors that rely heavily on cheap foreign labour.
The PWM aims to achieve four objectives:
- To ensure that workers receive a fair and decent living wage that reflects their skills and contributions
- To incentivise workers to upgrade their skills and increase their productivity
- To enhance the attractiveness and sustainability of the sectors covered by the PWM
- To benefit employers by reducing turnover, improving service quality and boosting business profits
The PWM is implemented through a tripartite approach involving the government, employers and unions. The government sets the policy framework and provides funding support for training and wage subsidies. The employers adopt the PWM wage ladder and invest in technology and innovation to improve productivity. The unions represent the workers’ interests and negotiate for fair wages and working conditions.
Who is Covered by the PWM?
The PWM currently covers four sectors: cleaning, security, landscape and retail. These sectors were chosen because they have a large proportion of low-wage workers, face challenges in attracting and retaining local workers, and have potential for productivity improvement.
The PWM applies to all Singapore citizens and permanent residents who work in these sectors, regardless of whether they are full-time or part-time employees. However, foreign workers are not covered by the PWM as they are subject to other regulations such as levies and quotas.
What is the Minimum Wage Per Hour Under the PWM?
The minimum wage per hour under the PWM varies depending on the sector, skill level and job role of the worker. The table below shows the minimum wages per hour for each sector as of 2021.
| Sector | Skill Level | Job Role | Minimum Wage Per Hour |
|---|---|---|---|
| Cleaning | Basic | General Cleaner | $9 |
| Cleaning | Intermediate | Indoor Cleaner / Outdoor Cleaner / Refuse Collector | $10 |
| Cleaning | Advanced | Supervisor / Team Leader | $11 |
| Security | Basic | Security Officer (Unarmed) | $10.50 |
| Security | Intermediate | Senior Security Officer (Unarmed) / Security Officer (Armed) | $11.50 |
| Security | Advanced | Chief Security Officer (Unarmed) / Senior Security Officer (Armed) / Security Supervisor (Unarmed) / Auxiliary Police Officer (Unarmed) | $12.50 |
| Landscape | Basic | Landscape Worker / Landscape Technician / Arborist Worker / Nursery Worker / Turf Worker / Irrigation Worker / Horticulturist Worker | $9 |
| Landscape | Intermediate | Landscape Supervisor / Arborist Supervisor / Nursery Supervisor / Turf Supervisor / Irrigation Supervisor / Horticulturist Supervisor | $10 |
| Landscape | Advanced | Landscape Manager / Arborist Manager / Nursery Manager / Turf Manager / Irrigation Manager / Horticulturist Manager | $11 |
| Retail | Basic | Retail Assistant / Cashier / Stock Replenisher / Merchandiser / Customer Service Assistant / Sales Assistant / Beauty Advisor / Pharmacy Assistant / Optical Assistant / Fashion Advisor / Florist Assistant / Pet Shop Assistant | $9 |
| Retail | Intermediate | Retail Supervisor / Cashier Supervisor / Stock Replenishment Supervisor / Merchandising Supervisor / Customer Service Supervisor / Sales Supervisor / Beauty Supervisor / Pharmacy Supervisor / Optical Supervisor / Fashion Supervisor / Florist Supervisor / Pet Shop Supervisor | $10 |
| Retail | Advanced | Retail Manager / Cashier Manager / Stock Replenishment Manager / Merchandising Manager/ Customer Service Manager/ Sales Manager/ Beauty Manager/ Pharmacy Manager/ Optical Manager/ Fashion Manager/ Florist Manager/ Pet Shop Manager | $11 |
Note that these are the minimum wages per hour for each skill level and job role. Employers can pay higher wages based on factors such as performance, experience and market demand.
How Does the PWM Compare to Other Countries?
Singapore’s approach to minimum wage is different from other countries that have a universal minimum wage law. For example, in Australia, the national minimum wage is A$20.33 per hour for all workers regardless of sector or skill level. In Hong Kong, the statutory minimum wage is HK$37.50 per hour for all workers except for domestic workers and student interns. In the United States, the federal minimum wage is US$7.25 per hour for most workers, but some states and cities have higher minimum wages.
The advantage of having a universal minimum wage is that it provides a basic level of income protection and reduces income inequality for all workers. However, it also has some drawbacks, such as:
- It may not reflect the different skills, productivity and value-added of different workers and sectors
- It may reduce the incentive for workers to upgrade their skills and for employers to invest in training and technology
- It may increase labour costs and reduce employment opportunities, especially for low-skilled workers and small businesses
The advantage of having a sector-specific minimum wage like the PWM is that it takes into account the different characteristics and needs of different sectors and workers. It also encourages skills upgrading, productivity improvement and career progression for low-wage workers. However, it also has some drawbacks, such as:
- It may not cover all low-wage workers in other sectors that are not under the PWM
- It may create wage disparities and distortions across sectors and occupations
- It may require more resources and coordination to implement and monitor
Conclusion
Singapore’s PWM is a unique and innovative way of setting minimum wages for certain sectors that have a large proportion of low-wage workers. It aims to ensure that workers receive a fair and decent living wage that reflects their skills and contributions, while also incentivising them to upgrade their skills and increase their productivity. Employers can also benefit from the PWM as they can attract and retain local workers, improve service quality and boost business profits.
The PWM is not a one-size-fits-all solution, but rather a tailored approach that suits the specific needs and challenges of each sector. It is also not a static model, but rather a dynamic one that evolves over time to keep pace with changing market conditions and expectations.
If you are an employer or an employee in one of the sectors covered by the PWM, you should familiarise yourself with the minimum wages per hour for your sector, skill level and job role. You should also take advantage of the various training and funding schemes available to help you upgrade your skills and productivity.
If you are interested in learning more about the PWM or other employment-related matters in Singapore, you can visit the Ministry of Manpower website or contact us for professional advice.
