PROGRESSIVE

WAGE MODEL
(PWM)

NOVA LITTY AUGUSTINE S10204943H

 WHAT IS PWM?

- Helps increase workers’ wages

→ upgrading skills
→ improving productivity
- Implemented in the cleaning, security &
landscape sectors
 BACKGROUND
- Helps workers in cleaning, security & landscape sectors
WHY?
Stagnant wages ( due to widespread cheap sourcing)
→ high turnover and labour shortages
 HOW DOES PWM HELP?

EMPLOYEES: Maps clear career pathway for increase in wages

EMPLOYERS: Higher profits = increase in profits
SERVICE BUYERS: better service standards & quality
EXAMPLE OF PWM
 INDUSTRY
TRENDS &
HAPPENINGS
CONSIDERATION OF EXPANDING PWM SECTORS
 PWM MAY BE EXPANDED TO MIDDLE-WAGE
WORKERS
- Possibly bring workers in pest management, strata management and solar technology under the model

→ solar tech isn’t considered ‘low-wage’; considered due to high manpower demand

- Potentially bring about 80000 workers under the model.

CHALLENGES
FACED BY
EMPLOYERS/EMPLO
YEES
 EMPLOYERS

Don’t see a visible Shortage of relevant

increase in productivity employees
DON’T SEE VISIBLE CHANGE IN PRODUCTIVITY

Despite having higher wages, lack of increase in productivity

 SHORT OF RELEVANT EMPLOYEES
→ many workers in sectors are older people

→ rather just go with routine than to upskill and remain relevant

 EMPLOYEES

Stagnant pay Lack of career progression Resetting of wages

by new employers
 1) STAGNANT PAY

Despite having an increased basic salary, employees’ have no/limited salary increments thereafter
2) LACK OF CAREER PROGRESSION
 3) WAGE RESET BY NEW EMPLOYERS

Should the company have a new employer, employers can reset the wages back to the minimum
 RECOMMENDATIONS
- Get employees to upgrade themselves

→ SkillsFuture

→ send them for job trainings

- Have more enticing job benefits

→ more leaves

- Have a feedback system

→ allows employees to share their inputs, makes them feel more valuable to company
 REFERENCES

https://www.businesstimes.com.sg/government-economy/progressive-wage-model-may-be-expanded-to-
middle-wage-workers-ntuc

Commentary: Singapore's poorest earners will benefit from ...https://www.channelnewsasia.com › news › commentary

https://www.theonlinecitizen.com/2013/11/25/problems-with-the-progressive-wage-model/