Government Accepts Recommendations on Retail Progressive Wage Model for Three-Year Schedule of Wage Increases, Provides Transitionary Support for Employers

On 11 August 2025, the Ministry of Manpower (“MOM“) announced that the Government had accepted the Tripartite Cluster for Retail (“TCR“)’s recommendations on the Retail Progressive Wage Model (“PWM“). This comprises two aspects:

  1. a three-year schedule of sustained PWM wage increases from 1 September 2025 to 31 August 2028; and
  2. an expanded list of training modules and Institute of Higher Learning (IHL) qualifications that can meet the minimum training requirements.

Schedule of Wage Increases

From 1 September 2025, gross monthly wages, and gross hourly wages for staff working less than 35 hours a week, will increase for three categories of staff:

From 1 Sept 2025From 1 Sept 2026From 1 Sept 2027
Retail Assistant/CashierMonthly wage: $2,305 Hourly wage: $12.09 Monthly wage: $2,435 Hourly wage: $12.77 Monthly wage: $2,565 Hourly wage: $13.45
Senior Retail Assistant/Senior CashierMonthly wage: $2,535 Hourly wage: $13.30 Monthly wage: $2,680 Hourly wage: $14.06 Monthly wage: $2,820 Hourly wage: $14.79
Assistant Retail SupervisorMonthly wage: $2,790 Hourly wage: $14.63 Monthly wage: $2,950 Hourly wage: $15.47 Monthly wage: $3,100 Hourly wage: $16.26

This will apply to more than 53,000 resident full-time and part-time retail workers. Additional wage requirements will apply to overtime hours. The PWM wages applicable from 1 Sept 2027 are subject to review in 2026, and may be adjusted upwards by TCR if the economic situation improves.

Expanded List

Under the PWM, employers must ensure that their Singapore citizen and permanent resident retail workers meet the applicable training requirements. The list of modules that qualify for meeting the training requirements have been expanded to include relevant courses offered by institutes of higher learning (IHLs). The full list is set out in Annex A to MOM’s announcement.

Support for Employers

To assist employers with adjusting to the PWM wage increases, eligible employers will automatically receive co-funding support under the Progressive Wage Credit Scheme (“PWCS“) for two years for wage increases for lower-wage workers as follows:

  1. For 2025: co-funding up to 40% of wage increases; and
  2. For 2026: co-funding up to 20% of wage increases.

Click the following link for more information:


Disclaimer

Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.

The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.

Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.

CONTACTS

Singapore,
+65 6232 0161
Lao PDR, Singapore,
+65 6232 0474
Singapore,
+65 6232 0922
Singapore,
+65 6232 0945

Country

EXPERTISE

Share

Rajah & Tann Asia is a network of legal practices based in Asia.

Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client.

This website is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this website.

© 2024 Rajah & Tann Asia. All Rights Reserved. All trademarks are property of their respective owners.