Enable Group | Oct 15, 2021
HR Advisory ● 2 min read
In Singapore’s National Day rally speech, held on August 29 2021, PM Lee made announcement on measures regarding lower income workers in Singapore amidst other social & national matters.
In accordance with the public statement found on the Ministry of Manpower (MOM) website regarding salaries, here are the information summarized in point form for reading.
1) Minimum salary : $1,400
Starting with the retail industry, foreign workers will soon be paid a minimum monthly income of $1,400.
This scheme will progressively extend to more sectors such as, food services, waste management, and cover specific occupations such as administrative assistant & drivers across all sectors.
2) Who is considered a lower-wage worker
Lower-wage workers refer to full-time residents earning a gross monthly salary (excluding employer CPF contributions) at or below S$2,033 in 2020.
The Progressive Wage Model (PWM) is currently being implemented in the cleaning, security, landscape & public maintenance sector where most of the workers fall into the income bracket.
The PWM will only apply to employees of a company, for more information
3) When will the PWM start for the newly included sectors
Starting from 1st September 2022 and beginning with the retail sector, firms in the newly included sectors that employs foreign workers will have to adhere to the minimum salary for all their workers before it can continue to hire anymore foreigners.
The timelines as follows
Retail – 1st September 2022
Food Services – 1st March 2023
Waste Management – 2023 onwards
4) Benefiting 80% of the total lower-wage worker popular in 2 years
The government targets to include 8 out of 10 lower-wage worker in the progressive wage scheme by 2023.
Are you a SME that is included in one of the sectors that will require to implement the PWM scheme? Or do you employ foreigners for a position that requires the PWM scheme?
Contact us if you would like to find out more about how you can manage this scheme more effectively and efficiently for your company.
ABOUT ENABLE CONSULTING
Established in 2013, enable Consulting is a specialised hr consulting firm.
We believe that having a strong and robust HR function is a key driver for continuous growth in any successful business. It is on this belief that we have built many successful partnerships with clients across different industries.
We are a people business and it is our talent pool that defines us. Each and every one of our consultants is highly professional with many years of experience in HR management consulting and services.
Our Consultants are PMC certified to further be able to help local SMEs improve and optimise their HR operational efficiency through Singapore Grants. enable is about offering affordable, high value adding solutions to improve business performance; while at the same time nurturing and inspiring a fair and respectful working environment. But above all, enable is about enabling you.
Contact us for a non-obligatory Q&A consultation today
Enable Group | Jan 20, 2023
Human resource management services are essential for every company. The human resource management (HRM) department is a component of an organisation responsible for developing, strengthening, and changing the company’s culture. Performance management, payroll processing, recruitment and onboarding, training and development, and reinforcing business values—all of these are covered by HRM. Because of their importance in […]
HR Advisory • 3 min read
Enable Group | Oct 25, 2022
Human resource (HR) is an integral component of many organisations, regardless of industry or size. The HR department essentially serves as the bridge that connects the company and its employees, ensuring that both are set up for success. Due to its massive importance, numerous businesses place much attention on their HR department and even engage […]
HR Advisory • 3 min read
Enable Group | Jun 30, 2021
It is getting hard to keep your best employees these days as the workplace is changing and job-hopping is becoming the normal resume for millennials. One of the most challenging parts of running a business, among others, these days is finding and keeping the talents to bring your company to the next level. With all […]
HR Advisory • 3 min read