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 1^st 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 – 1^st September 2022

Food Services – 1^st 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.

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