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He outlined measures such as the Progressive Wage Credit Scheme, which co-funds wage increases for eligible lower-wage workers, covering up to 75% in 2022 and 2023, and 50% in 2024.
Singapore’s Ministry of Manpower (MOM) has addressed a parliamentary query regarding the support available for micro businesses with fewer than six employees to ease the transition to the Progressive Wage Model (PWM). The query focused on tailored training programmes and potential exemptions or adjustments to alleviate the financial strain on these businesses.
Responding to this in Parliament on Tuesday (18 February 2025), Senior Minister of State for Manpower Zaqy Mohamad acknowledged concerns about rising costs due to wage increases under the PWM, emphasisnig that various support measures have been introduced to help businesses manage these costs while ensuring sustainable wage growth for lower-wage workers.
"Under Workfare Skills Support (WSS), all employers, including micro businesses, who send eligible lower-wage workers for such training may receive absentee payroll of up to 95% of the trainee’s basic hourly salary, capped at S$13 per hour,” SMS Zaqy shared. This initiative aims to provide financial relief during the training process.
Further, to enhance productivity and support business transformation, businesses are encouraged to redesign jobs and improve their business models. For instance, they can tap on the NTUC Company Training Committee (CTC) Grant, which co-funds transformation projects to raise productivity and improve work prospects.
To further assist businesses with the impact of PWM wage increases, the Government introduced the Progressive Wage Credit Scheme (PWCS). This scheme co-funds wage increases for eligible lower-wage workers, covering up to in 2022 and 2023, and up to 50% in 2024.
For 2025 and 2026, the PWCS will co-fund eligible wage increases by 30% and 15% respectively. This gradual support helps businesses cope with improving wage outcomes for lower-wage workers over a five-year period.
"Uplifting lower-wage workers is a whole-of-society effort. Beyond improving wage outcomes, we must also ensure our lower-wage workers continue to be productive in their respective sectors and have meaningful employment through upskilling under the PWM.
"Businesses must also transform and become more productive, such as through better technology and processes," SMS Zaqy stated.
He also urged employers to utilise these government measures to support their business transformation, upskill their workers, and manage wage increases effectively.
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