Enable Group | Oct 15, 2021
HR What Now, For Employers, For Employees ● 2 min read
In Singapore’s National Day rally speech, held on August 29 2021, PM Lee made announcement on measures regarding lower income workers in Singapore amidst other social & national matters.
In accordance with the public statement found on the Ministry of Manpower (MOM) website regarding salaries, here are the information summarized in point form for reading.
1) Minimum salary : $1,400
Starting with the retail industry, foreign workers will soon be paid a minimum monthly income of $1,400.
This scheme will progressively extend to more sectors such as, food services, waste management, and cover specific occupations such as administrative assistant & drivers across all sectors.
2) Who is considered a lower-wage worker
Lower-wage workers refer to full-time residents earning a gross monthly salary (excluding employer CPF contributions) at or below S$2,033 in 2020.
The Progressive Wage Model (PWM) is currently being implemented in the cleaning, security, landscape & public maintenance sector where most of the workers fall into the income bracket.
The PWM will only apply to employees of a company, for more information
3) When will the PWM start for the newly included sectors
Starting from 1st September 2022 and beginning with the retail sector, firms in the newly included sectors that employs foreign workers will have to adhere to the minimum salary for all their workers before it can continue to hire anymore foreigners.
The timelines as follows
Retail – 1st September 2022
Food Services – 1st March 2023
Waste Management – 2023 onwards
4) Benefiting 80% of the total lower-wage worker popular in 2 years
The government targets to include 8 out of 10 lower-wage worker in the progressive wage scheme by 2023.
Are you a SME that is included in one of the sectors that will require to implement the PWM scheme? Or do you employ foreigners for a position that requires the PWM scheme?
Contact us if you would like to find out more about how you can manage this scheme more effectively and efficiently for your company.
ABOUT ENABLE CONSULTING
Established in 2013, enable Consulting is a specialised hr consulting firm.
We believe that having a strong and robust HR function is a key driver for continuous growth in any successful business. It is on this belief that we have built many successful partnerships with clients across different industries.
We are a people business and it is our talent pool that defines us. Each and every one of our consultants is highly professional with many years of experience in HR management consulting and services.
Our Consultants are PMC certified to further be able to help local SMEs improve and optimise their HR operational efficiency through Singapore Grants. enable is about offering affordable, high value adding solutions to improve business performance; while at the same time nurturing and inspiring a fair and respectful working environment. But above all, enable is about enabling you.
Contact us for a non-obligatory Q&A consultation today
Enable Group | May 31, 2023
The recent pandemic took a toll on the entire workforce, and when it comes to HR, that meant tackling new and shifting responsibilities, such as feeling the need to be “on call” at all times and recruiting in an ever-changing job market. On top of this added complexity and stress, around 73% of HR professionals […]
HR What Now, For Employers, For Employees • 4 min read
Enable Group | Jun 13, 2022
Human resource personnel undertake a wide range of tasks on a daily basis. With so many things on their plate, the job of an HR professional can sometimes feel overwhelming and demanding. Fortunately, with the help of HRMS and payroll software, HR functions can now be completed more conveniently and swiftly. As the world becomes […]
HR What Now, For Employers, For Employees • 3 min read
Enable Group | Jul 28, 2020
Singapore enters technical recession as GDP plunges 12.6% in Q2 For the readers who are currently operating in any capacity of the HR personnel in a company it is official: Singapore has entered into its worse economy performance, possibly, since its founding year. Report read here. This is the situation that we all as companies […]
HR What Now, For Employers, For Employees • 5 min read