Key Provisions

• Incidence of Low Pay: In 2024, approximately 30% of full-time employed residents in Singapore earned less than two-thirds of the median wage, highlighting significant income disparity within the workforce.
• Progressive Wage Model (PWM): The Ministry of Manpower has reiterated plans to uplift lower-wage workers through the PWM, which aims to ensure fair wages based on skills and contributions.
• Policy Goals: This initiative seeks to address income inequality, improve living standards for low-wage earners, and promote social equity.

Summary of the Reform

In a recent written answer to parliamentary questions, Singapore’s Ministry of Manpower disclosed that about 30% of full-time employed residents earned less than two-thirds of the median wage in 2024. This statistic underscores ongoing income disparities within Singapore’s workforce. To combat this, the government has reaffirmed its commitment to uplifting lower-wage workers through expanding the PWM, which targets sectors such as cleaning, security, and landscape services. The PWM ensures wages reflect workers’ skills and contributions, fostering a more equitable labor market.

The policy, effective from October 2025, emphasizes Singapore’s dedication to social equity and economic inclusivity. By promoting fair wages, the government aims to reduce income inequality and enhance the quality of life for lower-wage earners, aligning with broader national goals of sustainable growth and social cohesion.

Who This Affects

• Employers: Companies across various sectors must review wage structures to ensure compliance with the PWM and address workers earning below the two-thirds median wage.
• Employees: Workers earning less than two-thirds of the median wage are directly impacted, with potential wage increases and improved job security.
• Legal and HR Professionals: Need to stay updated on wage regulations and implement necessary policy adjustments to comply with PWM requirements.
• Government Agencies: Responsible for monitoring compliance and providing support to lower-wage workers.

What Employers Should Do Now

• Review current wage structures to identify employees earning below the two-thirds median wage threshold.
• Develop or update HR policies to align with the PWM requirements.
• Engage with industry associations and government resources for guidance on implementing wage adjustments.
• Communicate transparently with employees about upcoming changes and support measures.
• Plan for wage increases and budget adjustments to ensure compliance without operational disruptions.
• Explore training and skills development opportunities to help employees qualify for higher wages under the PWM.

Source

For more details on the policy, visit the official Ministry of Manpower Singapore website: https://www.mom.gov.sg/newsroom/parliament-questions-and-replies/2025/1015-written-answer-to-pq-on-incidence-of-low-pay-in-singapore

Written by NNRoad