The Progressive Wage Model (PWM) is a structured framework introduced by the Singapore government and National Trades Union Congress (NTUC) to uplift lower-wage workers and ensure they receive fair and sustainable wage growth.
PWM achieves this by linking wage increments to skills upgrading and productivity improvements. PWMs currently in effect cover specific sectors such as retail, food services, cleaning, security, landscaping, administrators, drivers, waste management, lift and escalator. By following PWM requirements, businesses can enhance workforce skills while maintaining competitiveness.
What is Progressive Wage Model (PWM)?
Progressive Wage Model (PWM) is a scheme developed by NTUC and the Singapore government to increase the wages of full-time and part-time local workers (Singaporeans & PRs) in the following 7 sectors and advance their careers through upgrading skills and improving productivity.
- Cleaning
- Security
- Landscape
- Lift & Escalator
- Retail
- Food Services (PWM Introduced 1 March 2023)
- Waste Management (PWM Introduced 1 July 2023)
What that means for your company
- Wage Requirements: Minimum wage, including OT minimum wage requirements for specific sectors
- Training Requirements: Specific WSQ training courses, depending on your specific sector
If your company is in a sector listed above, it is compulsory to meet the PWM requirements of your sector, which generally covers two categories of requirements:
Effective 1 September 2022, PWM for cleaning, security and landscape has been extended to local in-house workers.
What that means for your company
Even if you are in a sector that is not listed above, but you have an in-house cleaner, security personnel or landscape personnel, your company must comply with PWM requirements for those specific employees.
What is Occupational Progressive Wages (OPW)?
Progressive Wage Model (PWM) is a scheme developed by the National Wages Council (NWC) to enhance the skills, productivity and minimum wages of local workers who are:
- Full-time or part-time employees in administrative or driving roles on contract of service; and
- Employed by firms which hire foreign workers
What that means for your company
Regardless of what sector you’re in — If your company hires administrators or drivers AND hires foreign workers, it is compulsory to meet the OWM requirements for those specific employees:
- Training Requirements: Specific WSQ training courses to ensure employees are equipped with skills needed to carry out their job functions
- Wage Requirements: Minimum wage to ensure employees are paid wages that commensurate with their skills and productivity
What are the implications of a failure to comply with PWM or OPW?
Food Services Sector
Unable to renew existing work passes or apply for new work passes
Retail Sector
Unable to renew existing work passes or apply for new work passes
Cleaning Sector
Unable to obtain or renew your NEA Cleaning Business Licence
Administrative OPW
Unable to renew existing work passes or apply for new work passes
Driver OPW
Unable to renew existing work passes or apply for new work passes
Security Sector
Unable to obtain Security Agency License under Police Licensing and Regulatory Department
Landscape Sector
Unable to obtain NParks’ Landscape Company Register (LCR)
Lift & Escalator Sector
Unable to register or remain registered under BCA’s RW02B and RW03B workheads
Waste Management Sector
Unable to obtain or renew your NEA License
FAQ
Frequently Asked Questions
What is the Progressive Wage Model (PWM)?
My company does not hire foreign workers. Do I still need to comply with PWM/OPW requirements?
If your company does not hire foreign workers, but has a licensing or registration requirement (applicable to Cleaning, Security, Landscape, Life & Escalator sectors), you will also be required to comply with PWM requirements.
How is my company being assessed for PWM and OPW compliance?
Your company is assessed for compliance with PWM/OPW based on the data that you submit through the MOM Occupational Employment Dataset (OED).
It is important to ensure that the data you submit in the OED Survey is accurate and compliant with PWM/OPW. Failure to submit OED or inaccurate data submission may impact your company’s application and renewal of foreign workers’ work passes.
Our PWM Consultancy includes one-time or monthly OED submission, to ensure continued compliance. Speak with our consultants to find out more.
It is important to ensure that the data you submit in the OED Survey is accurate and compliant with PWM/OPW. Failure to submit OED or inaccurate data submission may impact your company’s application and renewal of foreign workers’ work passes.
Our PWM Consultancy includes one-time or monthly OED submission, to ensure continued compliance. Speak with our consultants to find out more.
Is there any funding support to offset the wage increments required under PMW?
Yes there is!
The Progressive Wage Credit Scheme (PWCS) was introduced in in Budget 2022 to support companies that are increasing wages to be compliant with PWM, or voluntarily raising wages of lower-wage workers.
With PWCS, eligible wage increases will be co-funded for two years. This is an automatic funding that will be disbursed to your company automatically.
Speak with our consultants to find out if your wage increases qualify for PWCS, and how much funding you are eligible to receive.
The Progressive Wage Credit Scheme (PWCS) was introduced in in Budget 2022 to support companies that are increasing wages to be compliant with PWM, or voluntarily raising wages of lower-wage workers.
With PWCS, eligible wage increases will be co-funded for two years. This is an automatic funding that will be disbursed to your company automatically.
Speak with our consultants to find out if your wage increases qualify for PWCS, and how much funding you are eligible to receive.
Is there any funding support for the mandatory training required under PWM/OPW?
There are many training subsidies and funding support programme available for SMEs to upskill their workers. Among them, the Workfare Skills Support (WSS) Scheme is the most relevant for PWM training requirements. The WSS Scheme includes:
- Training Allowance at $6 per hour, capped at 180 training hours
- Training Commitment Award of up to $1,000
- Absentee Payroll for sponsoring employers, up to 95% of hourly basic salary, capped at $13 per hour
Speak with our consultants to find out more about WSS, and whether your company and employees are eligible for this funding support programme.
How does PWM benefit lower-wage workers?
The Progressive Wage Model (PWM) directly benefits lower-wage workers by providing structured wage increases based on their skills upgrading and productivity improvements. This model ensures that employees are fairly compensated while also equipping them with relevant industry skills. Employers who adopt PWM and pay progressive wages can build a more skilled and motivated workforce as they meet the PWM training requirements – leading to better service quality and efficiency.
What are the key requirements for companies under PWM?
Companies operating in designated sectors must comply with PWM requirements by ensuring their rank and file workers undergo skills upgrading and receive progressive wages that are compliant with the recommended wage structure. This includes:
- Offering training programmes to improve workers’ skills.
- Ensuring wage increases follow PWM guidelines.
- Maintaining compliance to avoid penalties and continue business operations smoothly.
By implementing PWM, businesses not only meet regulatory requirements but also create a more sustainable and skilled workforce with higher productivity.
Speak to our team for a complimentary review to assess if your company is compliant with PWM requirements.
Speak to our team for a complimentary review to assess if your company is compliant with PWM requirements.
What happens if my company does not comply with PWM?
Failure to comply with Progressive Wage Model (PWM) requirements can result in penalties, such as restrictions on hiring foreign workers and potential reputational risks. Businesses that do not meet PWM criteria may face difficulties in renewing work passes, business licenses or securing government contracts. Ensuring compliance by supporting skills upgrading and wage growth is essential to avoid disruptions.
If you’d like support to ensure compliance with PWM, book a discovery call with our team of HR experts that specialises in supporting businesses to redesign their wage structures and training programmes to be compliant with PWM.
If you’d like support to ensure compliance with PWM, book a discovery call with our team of HR experts that specialises in supporting businesses to redesign their wage structures and training programmes to be compliant with PWM.
How does PWM impact productivity and business growth?
By linking wages to skills upgrading and productivity improvements, PWM encourages businesses to invest in workforce development, training and job redesign. Employees who undergo continuous training become more efficient and skilled, leading to higher productivity and better service quality. In the long run, this enhances a company’s competitive advantage while ensuring sustainable and progressive wage growth for employees.
Does PWM apply to all industries?
Currently, the Progressive Wage Model (PWM) applies to specific sectors such as retail, food services, cleaning, security, landscape services, waste management, lift and escalator, with future expansions planned for other industries.
Additionally, the Occupational Progressive Wages (OPW) scheme covers administrators and driver roles, ensuring that more workers benefit from structured wage growth.
Additionally, the Occupational Progressive Wages (OPW) scheme covers administrators and driver roles, ensuring that more workers benefit from structured wage growth.
What is the difference between PWM and OPW?
While both Progressive Wage Model (PWM) and Occupational Progressive Wages (OPW) focus on wage increments and skills upgrading, PWM applies to industry-specific sectors, whereas OPW is designed for broader occupational groups such as administrative and driver roles. Both frameworks aim to uplift lower-wage workers by ensuring fair compensation and professional growth opportunities.
Is there financial support available for companies implementing PWM?
Yes! Businesses can tap into government funding to offset training costs and wage increments required under the Progressive Wage Model (PWM). Various grants and subsidies, such as the Progressive Wage Credit Scheme, support companies in training their employees, ensuring smoother compliance while benefiting from a more skilled workforce.
Book a discovery call with our team to find out which funding programmes your company might be eligible for.
Book a discovery call with our team to find out which funding programmes your company might be eligible for.
Speak to our Consulting Team to find out how you can navigate the requirements for PWM & OPW
Our Consultants will help you find out if you are currently compliant with PWM, and how you can best optimise your wages and training to be fully compliant.