MOM: Progressive wage model

Committee of Supply debate, 2 March 2021.

Progressive wage model

The progressive wage model (PWM) currently covers three industry sectors: cleaning, security and landscaping. It will cover the lift and escalator maintenance sector by 2022 and there are now discussions to implement PWM in six more sectors.

Based on MOM labour force data, apart from the aforementioned sectors, there are still more than 80,000 Singapore citizens and permanent residents aged 15 years and over working in other sectors, earning a gross income of less than $1,000 per month. These include 27,300 in transportation and storage, 10,900 in public administration and education, 8,000 in manufacturing, and 7,400 in health and social services. If we include those earning less than $1,500 per month, the numbers more than double.

Can the Minister share whether MOM has plans to roll out PWM to these sectors and, if so, what are the broad timelines for doing so?

The NTUC wants to look at a vocational PWM for lower-wage occupations like clerks, general machine operators and electricians. How does MOM plan to implement PWM for these vocations given they cut across multiple sectors? What levers will MOM use to impose wage, training and career progression requirements, in the absence of licensing conditions?

Finally, DPM Heng said that the Government’s aspiration is for every sector of the economy to have some form of progressive wages. Moving forward, how will the Government roll out the PWM differently, so that it can be implemented at a quicker pace and made universal? Which processes and requirements will be streamlined or removed, to ensure a faster rollout?

Author: Gerald Giam

Gerald Giam is the Member of Parliament for Aljunied GRC. He is the Head of Policy Research of the Workers' Party of Singapore. The opinions expressed on this page are his alone.