As announced on 26 January 2021, the PWM will be extended to the waste sector, with up to 3,000 local workers benefitting from the scheme.

In March this year, Senior Minister for Manpower Zaqy Mohamad also announced that the PWM will reach the food services and retail sectors within two to three years. During the Budget 2021 announcement, DPM Heng Swee Keat added that the government’s goal was for every sector to have some form of progressive wages.

So what exactly is the PWM, and why does it matter for your small business? Here’s what you need to know.

What is the PWM?

The PWM was developed by tripartite committees comprising the government, unions and employees. Akin to a minimum income, it helps low-wage workers in the cleaning, security and landscape sectors.

Due to widespread cheap sourcing, wages in these sectors had stagnated. Consequently, low wages led to high turnover and labour shortages.  

The PWM benefits low-wage workers by mapping out a clear career pathway for their wages to rise, along with training and improvements in productivity and standards.

Who it covers

The PWM covers all Singapore citizens and permanent residents (PRs) in the cleaning and security sectors, as well as landscape companies on NParks’ Landscape Company Register.

How it is implemented

The PWM is regulated by the respective lead sector agencies:

• Cleaning: Licensing condition by NEA
• Security: Licensing condition by PLRD (SPF)
• Landscape: Landscape Company Register requirement by Nparks

The mechanics of implementation vary from sector to sector. The progressive wage structure for the cleaning sector consists of three wage ladders for three broad categories of cleaning jobs: office & commercial sites, F&B establishments and conservancy.

A 5-level career progression model has been established for the security sector, ranging from security officer to senior security supervisor.

A 4-level career progression model is in place for the landscape sector, with job levels starting at landscape worker all the way to landscape supervisor.

What does the PWM matter for your business?

The PWM benefits business owners and customers too. As an employer, you benefit from your workers’ increased productivity and ability to provide better services. Higher productivity improves your business profits as well.

Service buyers also enjoy better service standards and quality, such as better-quality cleaning services, higher security standards or higher quality landscape maintenance services.

What non-compliance costs

PWM wage and training requirements are mandatory. As such, cleaning, landscape and security companies must meet the PWM requirements to obtain or renew their licences.

Since the PWM’s introduction, the National Environment Agency (NEA) has fined 57 licensed cleaning businesses for not complying with requirements. Additionally, warning letters were issued to 52 cleaning businesses for offences like failing to pay bonuses or progressive wages to cleaners.

The NEA has reiterated that enforcement checks will be conducted along with the Ministry of Sustainability and the Environment and the Ministry of Manpower.

How SMBs can ensure compliance

As an employer, you are required to adopt the PWM’s principles for your cleaners, security officers and landscape maintenance employees, including upgrading their skills and establishing productivity-based wage progression pathways.

Employers must have met PWM requirements by the following dates:

• Cleaning sector: 1 September 2014. Wages increased further from 1 July 2017.
• Security sector: 1 September 2016. Wages increased further from 1 January 2019.
• Landscape sector: 30 June 2016. Wages increased further from 1 July 2020.

Minimum wage requirements are sector-dependent. Do check MOM’s website for the most updated figures for the security, cleaning and landscape sector. Bear in mind other requirements such as PWM bonuses (at least two weeks of basic monthly wages payable to eligible employees in a given year from 2020).

Do also ensure training requirements are met, so that your workers are equipped with the skills needed to carry out their jobs. Refer to SSG’s training framework for the cleaning sector, landscape sector and security sector.

Where to get funding

Businesses can tap on the Workfare Skills Support scheme to offset a significant portion of the training costs for your Singaporean employees.

Co-funding for productivity improvement projects can also be obtained via various grants in the Lean Enterprise Development Scheme.