Low wage workers not in Progressive Wage Model sectors to earn at least $1400 a month

Progressive, Wage, Benefit, Government, PWM, Minimum, LQS, MOM, NTUC

Come 1 September 2022, a total of 221,000 full-time lower-wage workers will benefit from Progressive Wage moves.

Adjustment to Local Qualifying Salary (LQS)

159,000 full-time lower-wage workers who are not in the PWM (Progressive Wage Model) sectors will benefit from an adjustment to the Local Qualifying Salary.

The LQS is the salary an employer needs to pay all his local workers before he can hire a foreign worker. It has been has been revised four times in the last five years and has risen from S$1,000 in 2016, to S$1,400.

With the local qualifying salary (LQS) adjusted to $1400, these workers are assured that their wages will not fall below $1400 a month. Part-time local workers will also benefit from this new LQS requirement, as they will need to be paid at least $9 in gross wages per hour.  

Retail PWM

The newly launched PWM for the retail sector takes effect 1 September. It has an entry wage of at least $1,850. Wages will grow 18% over a 3-year period from $1850 to $2,175. It will benefit 19,000 workers

Government support

To support employers as they adjust to the Progressive Wage requirements, the Government is co-funding the wage increases given to lower-wage workers through the Progressive Wage Credit Scheme . The scheme will run for five years from 2022 to 2026.

The Government’s co-funding support for 2022 wage increases was recently enhanced from 50% to 75% for wages up to $2,500, and from 30% to 45% for wages above $2,500 up to $3,000. Employers are urged to use this period of support from the Government to accelerate firm-level productivity improvements, so that the wage increases remain sustainable for employers in the long run.

Food Services PWM and Occupational Progressive Wage

More lower-wage workers will also be able to benefit from the Food Services PWM and Occupational Progressive Wage which will be implemented from March 2023.

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 Progressive Wage Mark, which recognises eligible firms that pay Progressive Wages, will be launched by end 2022.

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