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The Security Tripartite Cluster (STC) has reviewed the Progressive Wage Model (PWM) for the private security industry and set out new recommendations to accelerate industry transformation and drive higher productivity whilst ensuring security officers continue to benefit from higher wages and better working conditions.
Key recommendations include:
a. Implement six-year wage increase of PWM baseline wages starting from 2023 whilst safeguarding officers’ welfare
b. Intensify efforts to raise industry standards and improve productivity of security officers through technology adoption and skills upgrading; urge more widespread adoption of outcome-based contracting and progressive procurement practices
c. Step up engagement and promotional efforts to further reduce overtime hours and improve working conditions; strengthen efforts to support progressive security agencies while bringing those who circumvent regulations to task
Background
Shortage of manpower has been a perennial challenge faced by the private security industry despite efforts to improve wages and working conditions of officers. While supply of active private security officers has increased over time, this shortfall persists due to manpower requirements of new buildings and COVID-19 safe management measures.
It is imperative that the private security industry takes a longer-term view and optimise the use of security manpower. Thus, it is timely and necessary to review the Security PWM as a way to effect bolder changes that the industry requires.
Schedule of wage increases from 1 Jan 2023 to 31 Dec 2028
The PWM for the private security industry was first announced by the STC in October 2014. Since then, it has been implemented as a licensing condition under the Police Licensing and Regulatory Department’s (PLRD) licensing regime for private security agencies from 1 September 2016. A six-year schedule of wage increases was recommended in November 2017, comprising a minimum three per cent annual increase in base salary from 1 January 2022 to 31 December 2024.
The STC recommends a six-year wage schedule starting from 1 January 2023 to 31 December 2028. This is summarised in the table below:
While the three per cent increase to the PWM baseline wages for year 2022 will remain, the STC recommends a significant increase to the security officers’ monthly wages in 2023 as well as a fixed dollar quantum annual increment from 2024 to 2028. This means that the monthly gross wage of Security Officers (lowest rank) will increase by more than 50 per cent from 2022 to 2028. Overall, the monthly gross wage across all job levels will increase by an average Compound Annual Growth Rate of 6.6 per cent from 2022 to 2028 – more than two times the minimum three per cent annual increase announced in November 2017.
In proposing the PWM baseline wages, the STC had taken in guidance by the Tripartite Workgroup on Lower-Wage Workers to ensure that overall wage growth of security officers outpaces the median resident worker, for our lower-wage workers to gain ground on the median worker. STC will review the wage schedule in 2025.
Sustainable wage growth without needing excessive working hours
Aligned with the industry intent to eventually move towards a 44-hour work week while ensuring security officers do not experience a fall in gross wages, the STC recommends that from 2024 onwards, PWM baseline wages for security officers should include wages paid for work done in addition to the 44-hour regular work week, and the basic wage for the rank of Security Officer be increased to $2,650. This will assure security officers of sustainable wage growth without needing to clock in excessive hours for a higher gross wage.
With this, from 2024, all security officers will cross the current $2,600 monthly basic wage threshold for coverage under Part IV of the Employment Act. Security officers would then be able to negotiate for better employment terms (such as regular working hours) with their employers.
As an added measure to safeguard the security officers’ welfare under the new wage schedule, the STC recommends that a maximum cap of 72 hours a month in extra hours is set above the 44-hour workweek. The cap would be enforced as part of the Security PWM, which is already a licensing condition under PLRD’s licensing regime for private security agencies and security officers. This will ensure all security officers are fit to discharge their duties in a professional and competent manner.
Whole-of-society commitment to uplift industry
With COVID-19, security officers play an additional role at the frontlines to keep Singapore safe and secure. The STC strongly urges all stakeholders to play their part as each stakeholder has a crucial role to play in uplifting the lives and livelihoods of our security officers and recognising their contributions.
Recommendations include for the Government to consider providing transitional wage support to help the industry mitigate the cost impact brought on by PWM wage increases; for service buyers to avoid cheap sourcing that will generally result in poor service outcomes; for service providers to invest in technology and explore job re-design or other ways to improve productivity and service outcomes; for security workforce to embrace upskilling and adopt a positive mindset towards learning new skills and work processes; and for the public at large to respect our frontline security officers who are carrying out their duties to safeguard everyone’s interests.
STC will intensify its engagement and promotional efforts to bring about stronger push for the industry to move away from headcount-based contracting model.
NTUC Assistant Director-General Zainal Sapari, who is Chairman of the STC, said, “COVID-19 has brought to the fore, the importance of our private security workforce in keeping us all safe and protected. However, the industry continues to be plagued by long working hours, ageing workforce and low productivity. It is imperative that the security industry needs to take bolder steps to successfully transform to one that is efficient, technology-enabled and able to attract a younger workforce. We want to see a future where our security officers can take full advantage of technologies, become more productive in their jobs, earn more while having more time to rest, and progress in their careers. The recommendations serve to make this a reality, with key suggestions and proposed interventions that we hope will make a marked difference in industry transformation efforts.”
Additional quotes from STC representatives:
Jeffrey Chua
STC Co-Chairman
Singapore National Employers Federation representative
Much more needs to be done to realise the vision of a vibrant, technologically advanced and competitive security industry that brings better security outcomes for Singapore and good career progression for our officers. The STC recommendations underscore the importance of having full commitment from all key stakeholders, particularly service buyers, to help transform and uplift the industry. To do so, service buyers must continue to work with tripartite partners for more widespread adoption of outcome-based contracting and progressive procurement practices.
Raj Joshua Thomas
President
Security Association Singapore
The shortage of manpower in the industry has been a long-standing issue, and has worsened each year with increasing demand for security services. The STC recommendations for higher baseline wages, and for progressively reducing working hours for officers, will help make security a more viable and attractive profession. With more officers staying in and entering the security workforce, security agencies will be better able to take up contracts and service clients without shortfall or resorting to illegal or unfair practices.
John Vijayan Vasavan
President
Association of Certified Security Agencies
Service buyers and security agencies must forge an alliance to achieve desired security outcomes. Through the adoption of outcome-based contracting where service buyers can yield the most beneficial outcomes, and with the introduction of technology where it will help our officers to continue upskilling and be future-ready, this will reduce our dependency on headcount. I would urge all service buyers and service providers to engage in regular conversations and adopt an open mindset to achieve a safe and secured community.
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Annex A: Enhanced PWM Wage Ladder
Annex B: STC Recommendations for Whole-of-Society
Annex C: Security Tripartite Cluster
Annex D: Security PWM Timeline
