Food services workers to receive further pay increases under Progressive Wage Model

At Budget 2026, the government said it would extend the Progressive Wage Credit Scheme for two more years. The scheme supports employers as they adjust to mandatory wage increases under the PWM or voluntarily increase the salaries of lower-wage workers.

The government is also enhancing the co-funding support from 20 per cent to 30 per cent for wage increases given in the qualifying year 2026.

Food establishments that are not allowed to hire foreign workers on mainstream work passes, such as hawker or coffee shop stalls, are exempted from PWM requirements, but are encouraged to adopt them.

Singapore National Employers Federation council member Benjamin Boh said employers have to start thinking about whether their businesses are productive and automated enough to stay profitable as wages increase, but it is still the right thing to pay workers more.

Businesses that see the positives in this and manage it well will be able to retain workers and do better overall, he added.

Other recommendations from the Tripartite Cluster for Food Services industry include refining job roles to reflect evolving needs and the recognition of more qualifications to meet the minimum training requirements.