\n<\/p>\n
Assistant secretary-general of the National Trades Union Congress Yeo Wan Ling said negotiations were “quite hard” for this second iteration of the PWM, but it is significant for workers, given the challenging economic times and the fact that employers are facing cost increments.<\/p>\n
“We are very, very grateful for the employers for doing this,” she said.\u00a0<\/p>\n
“I do believe this is when the tripartite works together to ensure that everybody looks at sustainable wage growth as well as productivity growth,” she added.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Businesses that see the positives in this and manage it well will be able to retain workers and do better overall, he added.<\/p>\n
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.<\/p>\n<\/div>\n