The government of Singapore has made public plans to elevate the wages of over 53,000 retail workers residing in the country within the forthcoming three years.
The Ministry of Manpower revealed their acceptance of the Progressive Wage Model (PWM) on Monday. This model proposes a systematic progression of wages for retail employees based on their levels and the requisite training at each level. Devised by the Tripartite Cluster for Retail Industry (TCR), the PWM aims to ensure that workers’ wages correlate with their skills and productivity.
As per the PWM, full-time retail assistants and cashiers will see a rise in their baseline monthly gross wages from the current $2175 to $2305 in September. This trend will continue with further increments to $2435 in the subsequent September and $2565 in September 2027.
There will be similar wage increases for senior retail assistants and cashiers starting from this September. Their wages will increase from the current $2395 to $2535, followed by further increments to $2680 in 2026 and $2820 in 2027.
The wages of assistant retail supervisors will also be raised from $2635 to $2790 in September, with subsequent increases to $2950 next year and $3100 in 2027. However, the wages of retail supervisors and managers will vary according to market conditions.
Part-time workers who clock in less than 35 hours a week will also benefit from a close to 6% rise in their hourly gross pay from September 1. Further wage increases will continue to be applied in the ensuing years.
The PWM requirements, which are mandatory, will cover retail employees who are Singapore citizens and permanent residents. A review of the wage schedule will be carried out by the TCR next year.
Employers will have to ensure that their retail workers meet the prescribed training requirements, including the Workforce Skills Qualification module or a relevant qualification from Institute of Higher Learning conferred by MOE-registered educational institutions. Employers will be given a grace period to comply with these training requirements.
TCR co-chair Ryan Chioh acknowledged the challenges of rising costs and manpower constraints in the industry, but expressed that “the PWM, with structured wage progression and targeted training, helps businesses tackle these pressures while building a skilled and motivated workforce.”
The PWM recommendations are the result of TCR’s extensive engagement with retail employers, the National Trades Union Congress, and industry associations.
As per the most recent data from the Department of Statistics, retail sales in Singapore (excluding motor vehicles) experienced a modest increase of 0.4% in June, following stagnant growth in May.
What is the Progressive Wage Model (PWM)?
The Progressive Wage Model is a wage structure that proposes a systematic progression of wages for retail employees based on their levels and the requisite training at each level.
Who will be affected by the PWM in Singapore?
The PWM will impact over 53,000 resident retail workers in Singapore, including full-time and part-time employees who are Singapore citizens and permanent residents.
What changes will employers need to make in light of the PWM?
Employers will need to ensure that their retail employees meet training requirements and are paid according to the wage schedule stipulated by the PWM. They will be given a grace period to comply with these changes.
