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The ministry noted that even workers outside the PWM are seeing income gains, as government schemes and market shifts seek to lift wages while cushioning business costs.
Singapore’s Progressive Wage Model (PWM) is not only raising pay in sectors where it applies, but also influencing wages in adjacent and non-covered industries, according to the Ministry of Manpower (MOM).
Responding to a recent Parliamentary question by Member of Parliament Sharael Taha, the ministry said most lower-wage workers outside PWM coverage have still benefited from related policies and accreditation schemes aimed at uplifting incomes.
Pay gains extend beyond PWM coverage
MOM noted that workers not covered by PWM have seen improvements through measures such as the Local Qualifying Salary and the Progressive Wage Mark accreditation scheme. These initiatives have contributed to real wage growth among lower-income earners, supporting the Government’s broader goal of narrowing income inequality.
Between 2021 and 2025, real gross monthly income at the 20th percentile rose by a cumulative 10.1%, surpassing the 7.4% increase recorded at the median. This indicates that lower-wage workers’ incomes have grown at a faster pace than the overall workforce.
Business cost concerns acknowledged
While wage increases benefit workers, MOM recognised that employers remain concerned about rising operating costs. However, the ministry emphasised that lower-wage workers typically represent a relatively small portion of total manpower expenses within most organisations.
Lower-wage employees make up about one-fifth of Singapore’s resident workforce, and their salaries are generally lower compared with the broader employee base. Manpower costs themselves are only one component of overall business expenditure, which also includes items such as rent and utilities.
Support schemes aim to keep wage growth sustainable
To ease the impact on businesses and ensure wage increases can be sustained, the Government has introduced funding support to help employers improve productivity.
The Progressive Wage Credit Scheme (PWCS), launched in 2022, co-funds wage increases given to lower-wage workers. Employers can also tap the Workfare Skills Support (WSS) (basic) scheme, which provides absentee payroll support when eligible employees attend training.
These measures are intended to help companies invest in upskilling and transformation, enabling workers to earn more without undermining competitiveness.
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