Model ID: 3435f4ee-ed60-43e6-90fa-f89aa514ea3b
Sitecore Context Id: 3435f4ee-ed60-43e6-90fa-f89aa514ea3b;
The Tripartite Cluster for Retail Industry (TCR) released its recommendations for the introduction of Progressive Wage Model (PWM) for the retail sector on 15 August 2022. The recommendations outline the wage and career progression as well as training for retail assistants, cashiers and assistant retail supervisors.
Key Recommendations of the Retail Progressive Wage Model
Key recommendations of the Retail Progressive Wage Model include:
-
Sustainable wage increases: Compound Annual Growth Rate of between 8.4% and 8.5% for baseline gross wages from 1 September 2022 to 31 August 2025
-
Better skills: minimum training requirements for all Retail PWM job roles
-
Better work prospects: a clear career progression pathway
The PWM for Retail industry, will take effect from 1 September 2022, and cover 46,000 full-time and part-time resident retail employees.
Sustainable Wage Increases: Compound Annual Growth Rate of between 8.4% and 8.5% for PWM Baseline Gross Wages
Taking guidance from the Tripartite Workgroup on Lower-Wage Workers’ (TWG-LWW) recommendation for wages to be expressed in gross terms (Total Monthly Gross Wages), the TCR tripartite members recommend the following for the retail sector:
a. Annual wage increments to the PWM Baseline Gross Wages (before overtime) at a CAGR between 8.4% and 8.5% for the next three years for three lowest job rungs, from 1 September 2022 to 31 August 2025;
|
PWM Job Level
|
PWM Baseline Gross Wages
|
From 1
Sep 2022
|
From 1 Sep 2023
|
From 1 Sep 2024
|
CAGR^
|
|
Retail Assistant /
Cashier
|
Monthly Gross Wage
(exclude OT)
|
$1,850
|
$1,975
|
$2,175
|
8.4%
|
|
Year-on-year increase >
|
$125
|
$200
|
|
Hourly Gross Wage
|
$9.70
|
$10.36
|
$11.41
|
|
|
Senior Cashier /
Senior Retail Assistant
|
Monthly Gross Wage
(exclude OT)
|
$2,035
|
$2,175
|
$2,395
|
8.5%
|
|
Year-on-year increase >
|
$140
|
$220
|
|
Hourly Gross Wage
|
$10.67
|
$11.41
|
$12.56
|
|
|
Assistant Retail Supervisor
|
Monthly Gross Wage
(exclude OT)
|
$2,240
|
$2,395
|
$2,635
|
8.5%
|
|
Year-on-year increase >
|
$155
|
$240
|
|
Hourly Gross Wage
|
$11.75
|
$12.56
|
$13.82
|
|
^Refers to Compound Annual Growth Rate from 2022 to 2024
b. Three-month averaging of PWM Baseline Gross Wages to give employers some flexibility in meeting PWM requirements due to seasonality fluctuations and yet ensuring fair wages for the retail workers;
c. Six months of implementation “run-in period” to allow employers to understand and adhere to the PWM requirements, from 1 September 2022 to 28 February 2023, applicable to retail firms that hire foreign manpower;
d. PWM Wages are expressed in gross terms which allow employers to incorporate all variable wage components (e.g. allowances, performance incentives/commissions) to meet the stipulated gross wages;
e. Safeguarding workers’ overtime pay by setting higher gross wage thresholds (i.e. Gross Wage Requirements) for PWM compliance.
Better Skills: Setting Minimum Training Requirements
It is important for retail workers to continously upgrade and upskill to equip themselves with the necessary skillsets that will enable them to take on higher value job roles with higher productivity for sustainable wage increases.
As a start, the TCR recommendations include one Workforce Skills Qualifications (WSQ) training module as the minimum PWM training requirements for all PWM job roles.
Better Work Prospects: Providing a clear Career Progression Pathway
The TCR recommendations mapped out the frontline operational and supervisory job roles within the retail sector, to provide a clear career progression pathway for the workforce in the retail industry and to attract new entrants, and will review the job descriptions periodically as some of the PWM job roles may evolve as the retail industry undergoes business and workforce transformation.
To help employers adjust to the Retail PWM and other Progressive Wage measures, the Government had introduced the Progressive Wage Credit Scheme (PWCS) during Budget 2022 to co-fund wage increases of eligible resident employees from 2022 to 2026. To help businesses address immediate-term labour cost concerns, given recent significant inflationary pressures, the Government announced in June 2022 that co-funding share in 2022 will increase from 50% to 75% for resident employees with gross monthly wages of up to $2,500, and from 30% to 45% for employees with gross monthly wages of above $2,500 and up to $3,000.
The Ministry of Manpower (MOM) will enforce the implementation of Retail PWM requirements through employers’ eligibility for work passes. Employers will need to comply with the stipulated Retail PWM requirements, and any other applicable PWM and Local Qualifying Salary requirements, in order to apply for new Work Passes (e.g. Work Permit, S Pass, Employment Pass) or renew existing Work Passes.
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Annex A: Tripartite Cluster for Retail Industry for the Term from March 2021 to March 2023
Annex B: Backgrounder on the Retail Industry
