Singapore to expand scope of progressive wage model

Tripartite committees comprising unions, employers and the government are working to extend the model to more sectors like food services and retail.
By: | May 4, 2021
Topics: Compensation and Benefits | Employee Experience | Health and Wellness | Learning and Development | News | Professional Development | Singapore

Singapore plans to more than double the number of workers covered under the Progressive Wage Model, which ties skills upgrades and productivity improvements to higher wages. 

The government has been working with tripartite committees comprising unions and employers to extend the model to more sectors like food services and retail. 

“This is not just a theoretical exercise, but a practical, effective strategy to improve the lives of more lower-wage workers,” said Prime Minister Lee Hsien Loong at the May Day Rally.

The prime minister also highlighted that “we are working on some other plans to support lower-income workers too”, adding that more details will be revealed at the National Day Rally in August.

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Such plans will be coordinated by Senior Minister of State for Manpower Zaqy Mohamad and the National Trades Union Congress (NTUC), he said, adding that the government is investing heavily in SkillsFuture, and will spend about S$1.4 billion (US$1.05 billion) over the next few years.

The programme is a national effort by the government to provide upskilling opportunities to Singaporeans in their careers.