Progressive Wage Model (PWM) for the Retail Sector

What is the Progressive Wage Model (PWM) for the Retail Sector?

The PWM aims to build a future-ready workforce, transforming retailers into employers of choice and retail jobs into fulfilling long-term career options for local job seekers. PWM is expanded to more sectors, including Retail, to ensure lower-wage workers’ wages close the gap with the median through higher wage growth than median wage growth.

Who does PWM covers?

The PWM requirements apply to Singapore Citizens and Permanent Residents who are full-time or part-time employees in retail job roles on a contract of service and employed by firms which hire foreign workers, regardless of whether the firm is classified under the Retail Sector Singapore Standard Industrial Classification (SSIC) or another SSIC.

The Retail PWM covers the following job roles:

• Retail Assistant / Cashier
• Senior Retail Assistant / Senior Cashier
• Assistant Retail Supervisor
• Retail Supervisor
• Retail Manager

More details on the coverage of retail jobs and description of duties and responsibilities can be found here.

What does this mean to me as an employer?

From 1 September 2022, employers must comply with the stipulated Retail PWM requirements to apply for new work passes (e.g., Work Permit, S Pass, Employment Pass) or renew existing work passes. To give employers time to adjust and comply with the Retail PWM requirements, the Ministry of Manpower (MOM) has rolled out a phased implementation.

Run-in Period of 6 months from 1 September 2022 – 28 February 2023:

During this period, MOM will focus on educating and supporting employers to understand and adhere to the PWM requirements without enforcing upon employers (i.e. suspension of Work Pass privileges such that employers will not be able to apply for new or renew existing Work Passes). However, if employers underpay the mandated Retail PWM wages, they should make up for the shortfall. They should also make the corresponding Employee’s Central Provident Fund (CPF) deduction and Employer’s CPF contributions in accordance with the CPF Act.

After Run-in Period from 1 March 2023 onwards:

Should there be any non-compliance with Retail PWM requirements, MOM will advise employers on the appropriate rectification actions to take within a reasonable timeframe. Failing which, enforcement measures (i.e. suspension of work pass privileges such that employers will not be able to apply for new or renew existing work passes) may be imposed.

What do I need to do as an employer?

These are the key recommendations and implementation details of the Retail PWM set out by the Tripartite Cluster for Retail Industry (TCR):

• A clear progression pathway comprising frontline operational and supervisory positions is mapped out to highlight the career opportunities in the sector and to encourage more jobseekers to join the retail industry
• To ensure retail workers have the necessary competencies to carry out their work, a minimum training requirement of one (1) Workforce Skills Qualification (WSQ) training module is recommended as a start
• A set of PWM Baseline Gross Wages is recommended that would take effect from 1 September 2022
• The PWM Baseline Gross Wages will also be adjusted upwards from 1 September 2023 and 1 September 2024 to ensure retail employees continue to see sustained wage increases.

Retail PWM Career Ladder

TCR has mapped out the frontline operational and supervisory job roles within the retail sector as shown:

WSQ Training

To encourage a continuous learning and upskilling mindset to support industry transformation, TCR recommends the setting of minimum training requirements for all PWM job roles. As a start, the TCR recommends that one (1) WSQ training module be stipulated as the minimum PWM training requirements for all PWM job roles. TCR also recommends that in-house WSQ training modules with the prefix “RET” in its TSC code be recognised as an approved training module.

SIRS offers a comprehensive suite of modules, which will enable retailers and their staff to meet training requirements. For information on class dates, please contact our Business Development team via email upskill@sirs.edu.sg.

Instead of going through training, an individual with previous experience or prior learning may choose to achieve his/her SOA through the Assessment Only Pathway (AOP), an alternative certification pathway for candidates who have work experience^# and/or formal/informal training in an area of competency.

The AOP consists of 1 to 1.5 hours of assessment. The mode of assessment under the AOP is the Challenge Test, which assesses the individual’s competencies through direct observation and questions to determine his/her competency.

^#Having at least 1 year of retail work experience within the last 2 years from the date of application for assessment.

The course fee before subsidies is S$270.

For more information, please contact our Business Development team via email upskill@sirs.edu.sg.

Retail PWM Baseline Gross Wages

The following table summarises the recommended Retail PWM Baseline Gross Wages (excluding overtime payment) from 1 September 2022 to 31 August 2025 to applicable resident workers (i.e. Singapore Citizens and Permanent Residents) in the retail sector.

Where can I get more information on the Retail PWM?

You may visit the MOM website for more information.