Latest news with #ProgressiveWageModel
CNA
15 hours ago
- Business
- CNA
Progressive Wage Model: Over 53,000 retail workers to see steady pay increases over next three years
More than 53,000 retail workers will see steady wage increases over the next three years, under updated recommendations to the sector's Progressive Wage Model. Entry-level jobs, such as retail assistants and cashiers, will see monthly wages rise to at least S$2,305, up from S$2,175, before reaching over S$2,500 by 2027. That's an increase of about S$130 a year. This comes as brick-and-mortar shops are seeing shrinking footfall, challenged by growing competition from online shopping and overseas alternatives. To ease the transition, the government will co-fund up to 40% of wage increases in the first year and 20% in the second. Caitlin Ng reports.
The Star
17 hours ago
- Business
- The Star
Singapore: Lower-wage retail workers to receive up to 6% pay bump from Sept 1
Arfah Mohamad Nasir, 23, is working on a flower bouquet at Far East Flora Centre. Lower-wage resident retail workers can expect an annual salary bump over the next three years. -- ST PHOTO: BRIAN TEO SINGAPORE (The Straits Times/ANN): Lower-wage resident retail workers can expect an annual salary bump ranging from 5.1 per cent to 6 per cent over the next three years. Full-time retail staff will receive these increments, amounting to $130 to $160 per year, from Sept 1, 2025, to Aug 31, 2028. Part-timers who work less than 35 hours a week can also expect an increase of close to 6 per cent in their hourly gross pay from Sept 1, before further hikes in subsequent years. The pay increase from Sept 1, 2027, is subject to review in 2026, as it may be adjusted upwards if the economic situation improves. The announcement was made by the Tripartite Cluster for Retail Industry (TCR) on Aug 11, after the Government accepted its new recommendations on the Progressive Wage Model (PWM) for the retail sector. TCR introduced its first set of recommendations in 2022, leading to an annual pay hike of 8.4 per cent to 8.5 per cent over three years for lower-wage retail staff who are Singaporeans and permanent residents. In a press release on Aug 11, the National Trades Union Congress said TCR has taken a 'balanced and pragmatic approach' while proposing the new round of more modest wage hikes, given the challenges facing employers in the retail sector. Many of them are grappling with rising operational costs, a manpower shortage, growing competition from e-commerce platforms as well as overseas retail options, especially with the Johor Bahru-Singapore Rapid Transit System Link set to begin operations in early 2027. Minister of State for Manpower Dinesh Vasu Dash noted that the global uncertainties were also taken into consideration. 'The Government is also watching the economic outlook closely, and if there's a requirement for us to make further changes along the way, we will consider that as well,' he told reporters during a visit to Far East Flora Centre on Aug 11. Under the new recommendations by TCR, entry-level retail workers will receive a monthly gross salary of at least $2,305 from Sept 1, up from the current $2,175. This excludes their overtime pay. Those who are more senior will see their baseline pay go up from S$2,395 to S$2,535 from Sept 1. For assistant retail supervisors, the baseline pay will rise from S$2,635 to S$2,790 from Sept 1, and will hit S$3,100 from Sept 1, 2027. To help businesses adjust to the higher labour costs, eligible employers will receive co-funding of up to 40 per cent of the salary increase in 2025, and 20 per cent in 2026. 'This will alleviate cost pressures, while enabling businesses to drive transformation efforts to enhance productivity and raise wages sustainably,' the Manpower Ministry said in a press release. Introduced in 2012, the PWM helps to uplift workers' wages through skills upgrading and productivity improvement. It has been implemented in sectors such as cleaning, security and landscape, as well as lift and escalator maintenance. More than 53,000 retail workers are now covered under the PWM. As at 2023, there were over 24,500 retail enterprises in Singapore employing about 142,000 workers. - The Straits Times/ANN
Straits Times
21 hours ago
- Business
- Straits Times
Lower-wage retail workers to receive up to 6% pay bump from Sept 1
Sign up now: Get ST's newsletters delivered to your inbox Ms Arfah Mohamad Nasir, 23, working on a flower bouquet at the Far East Flora Centre. Lower-wage resident retail workers can expect an annual salary bump from Sept 1. SINGAPORE - Lower-wage resident retail workers can expect an annual salary bump ranging from 5.1 per cent to 6 per cent over the next three years. Both full-time and part-time retail staff will receive these increments, amounting to $130 to $160 per year, from Sept 1, 2025 until August 31, 2028. The pay increase from Sept 1, 2027 is subject to review in 2026, as it may be adjusted upwards if the economic situation improves. The announcement was made by the Tripartite Cluster for Retail (TCR) industry on Aug 11, after the Government accepted its new recommendations on the Progressive Wage Model (PMW) for the retail sector. TCR introduced its first set of recommendations in 2022 , leading to an annual pay hike of 8.4 per cent to 8.5 per cent over three years for lower-wage retail staff who are Singaporeans and permanent residents. In a press release on Aug 11, the National Trades Union Congress said the TCR has taken a 'balanced and pragmatic approach' while proposing the new round of more modest wage hike, given the challenges facing employers in the retail sector. Many of them are grappling with rising operational costs, manpower shortage, growing competition from e-commerce platforms as well as overseas retail options, especially with the Johor Bahru-Singapore Rapid Transit System Link set to begin operations in early 2027 . Top stories Swipe. Select. Stay informed. Singapore Keppel to sell M1's telco business to Simba for $1.43b, says deal expected to benefit consumers Business Singtel, StarHub shares fall after announcement of Keppel's M1 sale Singapore ST Explains: Who owns Simba, the company that is buying M1? Singapore PM Wong's National Day Rally to begin at 6.45pm on Aug 17 Singapore Hyflux sought other funding sources for Tuaspring as it had problems getting bank loans: Prosecution Singapore S'pore Govt asks inactive political parties including Barisan Sosialis for proof of existence Opinion Trump's trade deals have one giant contradiction Under the new recommendations, entry-level retail workers will receive a monthly gross salary of at least $2,305 from Sept 1, up from the current $2,175. This excludes their overtime pay. Those who are more senior will see their baseline pay go up from $2,395 to $2,535 from Sept 1. For assistant retail supervisors, their baseline pay will rise from $2,635 to $2,790 from Sept 1, and will hit $3,100 from Sept 1, 2027. Part-time retail staff, or those working less than 35 hours a week, can also expect an increase of close to 6 per cent in their hourly gross pay from Sept 1. To help businesses adjust to higher labour costs, eligible employers will receive co-funding of up to 40 per cent of the salary increase in 2025, and 20 per cent in 2026. 'This will alleviate cost pressures, while enabling businesses to drive transformation efforts to enhance productivity and raise wages sustainably,' the Manpower Ministry said in a press release. Introduced in 2012, the PWM helps to uplift workers' wages through skills upgrading and productivity improvement. It has been implemented in sectors such as cleaning, security, landscape as well as lift and escalator maintenance. More than 53,000 retail workers are now covered under the PWM. As of 2023, there were over 24,500 retail enterprises in Singapore employing about 142,000 workers.
CNA
21 hours ago
- Business
- CNA
Retail workers eligible for new round of pay increases under Progressive Wage Model
SINGAPORE: The government has accepted recommendations on the Progressive Wage Model for the retail sector, which set out a three-year schedule of sustained wage increases for workers. The new schedule will apply to more than 53,000 resident full-time and part-time retail workers from Sep 1, 2025 to Aug 31, 2028, said the Ministry of Manpower (MOM) on Monday (Aug 11). It is part of the recommendations made by the Tripartite Cluster for Retail (TCR), which also outline an "expanded list of training modules" and recognition of Institute of Higher Learning (IHL) qualifications to meet the minimum training requirements. The Progressive Wage Model for the retail sector has been in place since Sep 1, 2022. The current wage schedule was set for three years until Aug 31, 2025. The TCR began its review in 2024 before releasing its recommendations on Monday. WAGE INCREASES From Sep 1, eligible entry-level retail workers such as cashiers and retail assistants will see their monthly gross wages increase from S$2,175 (US$1,690) to S$2,305. This baseline wage will rise annually by S$130 to S$2,565 from Sep 1, 2027, in a three-year plan under the Retail PWM. The hourly wage of entry-level retail workers, which applies to part-timers who work less than 35 hours a week, will also increase accordingly, from S$11.41 to S$12.09 next month, to S$13.45 from Sep 1, 2027. Under the plan, monthly wages for senior cashiers and senior retail assistants will rise from S$2,395 to S$2,535 next month, then to S$2,680 in 2026, and S$2,820 in 2027. These workers will receive annual wage increases of either S$140 or S$145, while those who work hourly will see their gross wages rise from S$12.56 to S$13.30 next month, and continue to increase over the following two years. Meanwhile, assistant retail supervisors will see their monthly wages rise by S$155 in September, S$160 in 2026 and S$150 in 2027, while their hourly wages will climb from S$13.82 to S$16.26 over the three-year period. The wages in the third year of implementation - starting Sep 1, 2027 - are subject to review in 2026. They may be raised if the economic situation improves, said MOM. "CHALLENGING" RETAIL ENVIRONMENT In a statement, the National Trades Union Congress (NTUC) said the recommendations come against a "challenging" backdrop for the retail sector. "Brick-and-mortar shops are experiencing shrinking footfall due to growing competition from e-commerce platforms and overseas retail alternatives, especially with the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link in 2026," it added. TCR chair and NTUC assistant secretary-general Yeo Wan Ling also said the recommendations aim to reshape the perceptions of retail jobs and position it as a "dynamic sector with meaningful, long-term career opportunities for Singaporeans". The recommendations were developed after extensive engagement with key stakeholders, including retail employers, NTUC's affiliated unions, industry associations and workers. With other factors such as rising operational costs and manpower shortages affecting the local retail sector, NTUC noted that the TCR has taken a "balanced and pragmatic" approach in its recommendations. "This integrated approach aims to support business sustainability while enabling workers to grow in skills, responsibilities and wages in tandem with industry transformation." On the increased hourly rates, NTUC also said they help to ensure that part-time workers are fairly compensated based on the same PWM structure as their full-time counterparts. CO-FUNDING SUPPORT, GREATER RECOGNITION To help cushion the PWM wage increases, eligible employers will automatically receive co-funding support under the Progressive Wage Credit Scheme (PWCS) until 2026, said MOM. "The PWCS will co-fund up to 40 per cent of wage increases given to lower-wage workers in 2025, and 20 per cent in 2026." Under the scheme, which was introduced in 2022, the government pays for part of the wage increase that an employer gives to workers. MOM said the co-funding will help in alleviating cost pressures while "enabling business to drive transformation efforts to enhance productivity and raise wages sustainably". The TCR also recommended expanding the list of training modules and recognising qualifications from Institutes of Higher Learning (IHLs) to meet the minimum training requirements under the Retail Progressive Wage Model (PWM). Retail workers who hold relevant qualifications from Institutes of Higher Learning (IHLs), such as Ngee Ann Polytechnic, Republic Polytechnic and Nanyang Polytechnic, will be recognised as having met the minimum PWM training requirements. Those who have attained the Institute of Technical Education (ITE) skills subject certificate in retail & e-commerce will also be considered to have fulfilled the requirement. NTUC noted that the move aims to provide retail workers with more accessible and diverse pathways to meet training requirements, while also acknowledging prior learning and industry-relevant credentials. "With more recognised training options, workers can upskill more efficiently and confidently pursue career advancement within the sector," it said.
Straits Times
28-05-2025
- Business
- Straits Times
Real wages in Singapore up 3.2% in 2024 but fewer firms plan increases this year: MOM
Real wages grew 3.2 per cent in 2024, up from 0.4 per cent in 2023 as inflation eased, said MOM. ST PHOTO: JASON QUAH Real wages in Singapore up 3.2% in 2024 but fewer firms plan increases this year: MOM SINGAPORE - Real wage growth in Singapore picked up in 2024 as inflation eased, but could slow down this year due to ongoing geopolitical tensions and global trade uncertainties, said the Ministry of Manpower (MOM). Nominal total wages grew by 5.6 per cent in 2024 on the back of continued economic growth, which was comparable to the growth at 5.2 per cent in 2023. After accounting for inflation, which eased from 2023, r eal wages grew 3.2 per cent in 2024, up from 0.4 per cent in 2023, said MOM in its annual wage practices report released on May 28. MOM's forward-looking survey conducted in the first quarter of 2025 indicated a decline in the share of firms planning wage increases. The proportion of firms intending to do so dropped to 22 per cent in March 2025 from 32 per cent in December 2024. 'These trends point to a potential moderation in nominal wage growth in 2025 compared to 2024, especially in trade-reliant sectors such as manufacturing and wholesale trade,' MOM said. The ministry said eight in ten establishments remained profitable in 2024, just slightly lower than 82.1 per cent in 2023. The manufacturing sector saw an increase in profitable firms, while real estate services, construction and wholesale trade did not fare as well. The ministry noted that while more firms raised their employees' salaries in 2024, they did so to reward past organisational performance, rather than to signal forward-looking confidence. Only 3.2 per cent of the firms surveyed cut wages in 2024, down from 6.5 per cent in 2023. MOM said there is continued demand for skilled workers in sectors like the administrative and support services, financial services, as well as community, social and personal services. The administrative and support services reported the highest wage growth at 8.7 per cent i n 2024, largely due to the Progressive Wage Model. This was followed by the financial services at 6.7 per cent, and the community, social and personal services at 5.7 per cent. But wage growth in the manufacturing and wholesale trade industries were below average, coming in at 5.1 per cent and 4.2 per cent respectively, due to the ongoing geopolitical and trade tensions. These two trade-reliant sectors are expected to further moderate in 2025. Rank-and-file workers and junior management employees experienced slightly higher wage growth at 5.8 per cent and 5.6 per cent respectively, as compared to senior management at 5.1 per cent. 'Policy factors, such as increases in the local qualifying salary and the implementation of Progressive Wage Model initiatives have also contributed to higher wage increases among lower-income employees,' the ministry said. Meanwhile, 76 per cent of firms have adopted some form of flexible wage system, said MOM. This means they have either included a monthly variable component (MVC) or an annual variable component (AVC) into their wage structure. However, the share of firms which have fully adopted the flexible wage system remained low at 8.5 per cent. Firms that adopted at least one FWS component reported higher wage growth than those that did not. 'They were able to adjust the variable components to offer bonuses to employees during periods of good economic growth,' MOM said. Check out the Headstart chatbot for answers to your questions on careers and work trends.
