In November 2018, the Tripartite Cluster for Landscape Industry (TCL) recommended enhancements to the Progressive Wage Model (PWM) for the landscape maintenance sub-sector. This included a mandatory PWM Bonus to be paid annually to eligible resident landscape maintenance employees from 2020. The Government accepted the recommendations and announced that the mandatory PWM Bonus would take effect from 1 January 2020, under the Landscape Company Register (LCR) administered by the National Parks Board. An estimated 3,000 resident landscape maintenance employees stand to benefit.
Besides helping to uplift the total income of the workers, the PWM Bonus will serve to enable employers to better attract and retain their workers. In turn, employers would be more likely to invest in workers’ training to raise productivity. In this aspect, the PWM Bonus is not tied to workers’ performance.
Implementation details of PWM Bonus
In an addendum to the 2018 TCL Recommendations issued today, the TCL sets out the recommendations for the implementation of PWM Bonus taking effect from 1 January 2020. Details can be found in Annex A.
In summary, the PWM Bonus is payable to Singapore Citizen and Permanent Resident landscape maintenance employees who have worked for the same employer for at least 12 months. This condition is waived for circumstances beyond the workers’ control, such as if there is a change of service provider. Part-time landscape maintenance employees are also eligible, with the PWM Bonus to be calculated on a pro-rated basis.
The total PWM Bonus paid to a worker in a given year must be at least two weeks of basic monthly salary. This must be reflected in the salary slip and is subject to prevailing CPF contribution rates by both employer and employee. The PWM Bonus must be paid at least once a year, but not more than twice a year.
The TCL recognises that some landscape companies may already provide some form of variable bonuses to their workers. An employer would be deemed to have complied with the PWM Bonus requirements as long as the total sum of such bonuses paid in a year amounts to no less than the stipulated two weeks of the worker’s basic monthly salary.
Win-win outcomes for all stakeholders
With the PWM basic wage levels set to increase yearly starting from 1 July 2020, the TCL recommends that service providers renegotiate existing contracts with their service buyers to take into account both the new PWM wages and PWM Bonus for landscape maintenance employees. Service buyers are discouraged from extending existing contracts unless they are prepared to vary contract prices to take into account the new PWM wage schedules going forward.
NTUC Assistant Secretary-General Zainal Sapari, who is also Chairman of the TCL, said, “Following the earlier PWM recommendations made by the TCL, the implementation of a PWM Bonus is another positive step towards uplifting the wages and work prospects of our landscape maintenance employees. Importantly, all stakeholders stand to benefit – workers from better wages and career progression; service providers from better staff retention as well as a more motivated and productive workforce; and service buyers from better service outcomes.”
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