Overview
The Progressive Wage Model (PWM) is a wage structure in Singapore designed to systematically raise the incomes of lower-wage workers through skills upgrading and improved productivity . Instead of a simple national minimum wage, the PWM takes a sectoral approach: it charts out a wage ladder for specific industries, where each rung corresponds to higher skills, training, job responsibilities, and productivity. As workers progress (through training, certification, or taking on higher-value tasks), employers are required to pay them higher wages according to the established ladder. This model was developed through Singapore’s tripartite partnership (unions, employers, and government) as a way to uplift wages in a sustainable manner that also encourages career growth.
Sectors and Coverage
Initially introduced in the cleaning industry in 2014, the PWM has since been extended to other low-wage sectors over the years. As of mid-2020s, the sectors covered by mandatory PWM include: Cleaning, Security, Landscape Maintenance, Lift & Escalator Maintenance, Retail, Food Services, and Waste Management, among others. For each sector, a Tripartite Cluster (comprising representatives from the government, the industry employers, and the union) determines the progressive wage structure specific to that sector. For example:
• In the Cleaning sector, jobs are categorized (e.g. toilet cleaner, office cleaner, supervisor) with a defined wage floor for each level, and requirements for training (such as WSQ certifications) to move up.
• In Security, a tiered wage structure is set for security officers, senior security officers, up to chief security officers, with corresponding training modules (like security WSQ courses) and years of experience for progression.
• Newer sectors like Retail and Food Services saw PWM wage ladders introduced around 2022–2023, setting baseline wages for roles like shop assistants, cashiers, waiters, and cooks, with stipulated increments over the years.
Additionally, PWM has been introduced by occupation in some cases (known as Occupational Progressive Wages). For instance, administrators and drivers (common roles across sectors) now have PWM wage requirements if they earn below a certain threshold, ensuring a base wage tied to their skills and productivity even if their industry is not otherwise covered.
How the PWM Works
The Progressive Wage Model works on the principle of “progression.” It is built on four key components often summarized as the “4 Ps”: Progressive wages, Training (Productivity), Job progression Path, and Productivity improvements. In practice:
• Entry Level and Progressive Tiers: A new worker in a PWM-covered sector is guaranteed a certain minimum salary (higher than they might otherwise get without the law, thus lifting wages at the bottom). This is the base tier. As the worker gains experience and completes required training certifications, they become eligible for higher roles (next rungs on the ladder) which come with mandated higher minimum pay.
• Training and Productivity: The model explicitly links wage increases to skill acquisition. Employers are encouraged (and sometimes required) to send their workers for training courses. For example, a cleaning employee might need to complete a Workforce Skills Qualifications (WSQ) module on operating specialized cleaning equipment to move from “general cleaner” to “specialist cleaner” at higher pay. The idea is that with better skills, the worker can be more productive or take on higher-value tasks, which justifies the higher wage – hence the wage increase is “earned” by productivity gains.
• Licensing and Compliance: The government enforces PWM by tying it to business licensing requirements. For instance, cleaning companies must be licensed, and a condition of the license is paying cleaners according to the PWM. Security agencies similarly must comply with PWM wages to get or renew their licenses. This creates a legal mandate for compliance. Companies found not adhering can lose their license to operate in that business.
• Regular Upward Revisions: The tripartite clusters periodically review and raise the wage ladders. There is often a multi-year schedule published – for example, wages in the cleaning sector were stepped up annually by a certain amount from 2020 through 2022, to reach a target level. This ensures wages keep pace with cost of living and aspirations, and avoids stagnation.
Under PWM, a low-wage worker has a clear pathway to earn higher wages by acquiring skills and taking on higher responsibilities, rather than being stuck at a static minimum wage. It’s effectively a “minimum wage plus” model – minimum wages at various levels with built-in career progression.
Importance and Impact
The Progressive Wage Model is significant for a few reasons:
• Uplifting Lower-Wage Workers: It directly raises the pay floor for traditionally low-paid jobs, improving livelihoods. For example, tens of thousands of cleaners, security guards, and gardeners have seen salary boosts due to PWM implementation.
• Encouraging Up-skilling: By coupling wage increases with training, PWM combats skill stagnation. Workers are motivated to attend courses and improve their qualifications. This has positive spillovers for the economy, creating a more skilled workforce at the lower end of the wage spectrum.
• Tripartite Collaboration: PWM is a product of consensus between unions (pushing for better wages), employers (who want productivity and flexibility), and the government (which balances social and economic goals). It demonstrates Singapore’s distinctive approach to labor issues through tripartite cooperation rather than adversarial methods.
• Contrast with Minimum Wage: Unlike a blanket national minimum wage, PWM is more tailored. It avoids a one-size-fits-all wage floor that could disadvantage certain sectors or small businesses. Instead, it calibrates wage requirements by sector, often with lead time and support (grants for firms to automate or up-skill workers) to help businesses adjust. The government often highlights PWM’s advantages, noting that it not only raises wages but also “upgrades jobs”, whereas a simple minimum wage might raise wages without improving job value or worker skills .
From an HR and compliance perspective, companies in PWM sectors must budget for rising salaries as per the schedules and ensure they meet the training requirements. There are also complementary measures like the Progressive Wage Mark (an accreditation for firms that voluntarily pay all their lower-wage workers according to sectoral PWMs even if not legally required) which some companies adopt to showcase themselves as progressive employers.
In summary, the Progressive Wage Model is a cornerstone of Singapore’s approach to addressing income inequality in lower-wage jobs. It seeks to achieve sustainable wage increases by tying them to skills and productivity, thereby benefiting workers (through higher pay and skills) and employers (through a better-trained workforce) in tandem.
