COS 2021: Progressive Wage Model

Mr Gerald Giam Yean Song (Aljunied): The Progressive Wage Model 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 50 and over, working in other sectors earning a gross income of less than $1,000 a month. These include 27,300 in transportation and storage, 10,900 in public administration and education, 8,000 in manufacturing, 7,400 in health and social services, and, if we include those earning less than $1,500 per month, the numbers more than doubled.

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

Finally, Deputy Prime Minister 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? For example, which processes and requirements will be streamlined or removed to ensure a faster rollout?

Ministry of Manpower
2 March 2021

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