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MOM cracks down on errant employers to ensure Progressive Wage Model compliance

The ministry will continue to work with NTUC and SNEF to educate employers on the PWM requirements.
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By Jaime Lee 06 Jun 2024
Model ID: 6657a30e-0d75-49f7-9f1d-312d216d30e3 Sitecore Context Id: 6657a30e-0d75-49f7-9f1d-312d216d30e3;

The Manpower Ministry (MOM) has found two errant employers from the retail industry that remained non-compliant to the Retail Progressive Wage Model, underpaying 12 employees about $450 a month per person since April 2023.


MOM made the announcement on 6 June 2024.


MOM took enforcement action to suspend both employers' access to apply for or renew work passes for foreign workers until they rectify the underpayments. 


MOM said that from April 2023 to March 2024, it inspected 4,100 retail and food service firms, covering 87,000 local full-time workers under the PWM.


A six-month run-in period was implemented to allow employers to adjust to the requirements, and it has now concluded for all sectors.


Most inspected employers were compliant with the PWM requirements, said MOM.


The PWM is an initiative mooted and spearheaded by the Labour Movement.

The model benefits workers by mapping out a clear career pathway for their wages to rise along with training and improvements in productivity and standards.

The ministry added that some employers were unfamiliar with PWM requirements but rectified the wages after MOM’s explanation.


The ministry will continue to conduct workplace inspections on PWM compliance across sectors and work with the tripartite partners and the PWM sectoral leads to educate and help employers meet their PWM requirements and pay workers their rightful wages.


Increased Skills, Increased Productivity


As workers upskill under the PWM, employers benefit from a more skilled and productive workforce, leading to sustainable wage increases.


Employers needing guidance on PWM can sign up for the Progressive Wages workshops organised by the Singapore National Employer Federation (SNEF).


These workshops are fully subsidised until August 2024 and have benefitted more than 600 employers.


In addition to these workshops, eligible employers will automatically receive co-funding support under the Progressive Wage Credit Scheme (PWCS).


In 2023, over 70,000 employers received almost $1 billion in co-funding support through PWCS for PWM wage enhancements implemented in 2022. This year, the co-funding rates will be elevated from 30 per cent to 50 per cent for wages up to $2,500 and from 15 per cent to 30 per cent for wages exceeding $2,500 and up to $3,000.


Employees can access the Progressive Wage Portal using their SingPass credentials to verify that they receive the appropriate wages according to their PWM job level.


Employees can also verify their eligibility for the Workfare Income Supplement (WIS) payouts and their wages through the portal. Employees should clarify any discrepancies with their employer.


Workers may approach their union or MOM at 6320 7722 or if they need further assistance.

More information on PWM can also be found on MOM’s website.