Singapore’s Ministry of Manpower (MOM) announced critically important wage increases for retail workers, effective September 1, 2024. The move, part of the Progressive Wage Model (PWM), aims to uplift the earnings of approximately 12,000 retail employees across the nation. The phased implementation will continue annually through 2027, with potential adjustments based on economic conditions.

Key wage Increases

• Entry-Level Workers (Cashiers, Retail Assistants): Monthly gross wages will rise from S$2,175 (US$1,690) to S$2,305, increasing annually by S$130 to reach S$2,565 by September 1, 2027. Hourly rates for part-time workers (under 35 hours/week) will increase from S$11.41 to S$12.09 initially, and to S$13.45 by 2027.
• Senior Workers (Senior Cashiers, Senior Retail assistants): Monthly wages will increase from S$2,395 to S$2,535 in September, then to S$2,680 in 2026, and S$2,820 in 2027. Hourly rates will rise from S$12.56 to S$13.30 initially, with further increases over the next two years.
• assistant Retail Supervisors: Monthly wages will increase by S$155 in September, S$160 in 2026, and S$150 in 2027. Hourly wages will climb from S$13.82 to S$16.26 over the three-year period.

Understanding the Progressive Wage Model

The Progressive Wage Model, first introduced in 2012, is a cornerstone of Singapore’s efforts to improve the wages and skills of lower-wage workers.It mandates a wage ladder linked to skills and productivity, ensuring that workers earn more as they take on higher responsibilities and undergo training.The retail sector is the latest to be included under the PWM, following successful implementations in cleaning, security, landscape, and lift maintenance industries.

The PWM aims to address income inequality and promote inclusive growth by ensuring that wage increases are lasting and tied to improvements in job quality. It also encourages employers to invest in their workforce and adopt more efficient business practices.

Government Support and Economic Considerations

Minister of State for Manpower, Dinesh Vasu Dash, emphasized that the new PWM schedule considers the current global economic uncertainties, particularly within the trade sector. The government will closely monitor the economic outlook and is prepared to make further adjustments if necessary.

To mitigate the financial impact on retailers, the government is providing co-funding to offset the increased wage costs. Mr. Dinesh stated that this co-funding provides “buffers” and reduces the need for retailers to pass the full cost of wage increases onto consumers.

Looking Ahead

The wages outlined for the third year of implementation, starting September 1, 2027, are subject to review in 2026. Potential increases will be contingent on the prevailing economic situation. The government encourages retailers to leverage this period to enhance business processes and invest in employee skill development.

Frequently Asked Questions

Q: Who is eligible for these wage increases?

A: The wage increases apply to eligible entry-level, senior, and supervisory retail workers in Singapore.

Q: When will the wage increases take effect?

A: The first phase of wage increases will take effect on September 1, 2024.

Q: Will consumers see price increases as a result of these wage increases?

A: The government has provided co-funding to retailers to help offset the costs,minimizing the need