What is Singapore's minimum wage in 2024?

As an employee in Singapore's market, you must have wondered: Does Singapore have minimum wage? Understanding Singapore's wage system is crucial not only for managers and businesses but also for workers. This article will provide some basic information about Singapore's wage system and clarify whether this country implements a minimum wage system or not.

What is Minimum wage?

Minimum wage is the lowest amount of compensation that employers are legally required to pay their employees for work performed within a specified period, such as an hour, a day, or a month. It is set by law or government regulation and serves as a safeguard to ensure that workers receive a fair and livable wage for their labor. Minimum wage laws aim to prevent the exploitation of workers by setting a floor on wages, thereby helping to reduce poverty, promote economic stability, and ensure social justice. The specific minimum wage rate can vary widely between countries, regions, and industries, and may be adjusted periodically to keep pace with changes in the cost of living and economic conditions.

Minimum wage is the legally lowest pay rate

Does Singapore have minimum wage?

No, Singapore does not have minimum wage laws for all employees. The Ministry of Manpower (MOM) generally does not prescribe minimum wages, as it believes that wages are best determined by market demand and supply for labor. Instead, Singapore adopts the Progressive Wage Model (PWM) for certain economic sectors. Under the PWM, minimum wages are prescribed for specific industries, aiming to ensure fair compensation and promote skill development among workers in those sectors. So, what is the Progressive Wage Model? Let's delve into the next section for further understanding.

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The Progressive Wage Model

The Progressive Wage Model (PWM) is a policy framework implemented in Singapore to address issues of low wages and income inequality, particularly in specific economic sectors. Unlike traditional minimum wage laws, which set a fixed minimum wage regardless of skill level or productivity, the PWM aims to ensure that workers receive fair compensation that reflects their skills, capabilities, and productivity levels.

Who are subject to The Progressive Wage Model?

The Progressive Wage Model (PWM) covers Singaporeans, Permanent Residents (PRs), and workers in:

• Cleaning

• Security

• Landscaping

• Life and escalator

By March 2023, it expanded to include

• Retail

• Food services

• Waste management

• Drivers and administrative assistants.

Part-time and temporary employees are also encompassed within the PWM framework, with their wages adjusted proportionately based on full-time equivalents.

Cleaning is one of  the sectors covered by the Progressive Wage Model

Minimum Wage based on Progressive Wage Model in Singapore

The minimum wage in Singapore, as determined by the Progressive Wage Model (PWM), varies across different sectors and job categories. Unlike a standardized minimum wage, the PWM sets specific wage ladders for each sector, with rates that increase over time. The following table illustrates the minimum basic salary mandated for various sectors in Singapore along with their respective readjustment dates:

Furthermore, eligible employees in sectors covered by the PWM, such as cleaning and landscaping, may receive a PWM Bonus equivalent to at least two weeks of their basic monthly salary. This bonus, pro-rated for part-time employees, is payable to those who have worked for the same business for a minimum duration, typically 12 months.

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Other minimum wage requirements

In addition to the PWM, Singapore has other minimum wage requirements, such as the Local Qualifying Salary (LQS) for firms hiring foreign workers. While not a traditional minimum wage, the LQS serves as a threshold to prevent the exploitation of resident employees and ensure fair access to job opportunities.

There are guidelines set by the Ministry of Manpower (MOM) for the Local Qualifying Salary (LQS) requirement, which applies to certain categories of workers, especially part-time employees. As of now, minimum wage in Singapore per hour for LQS is $9 per hour gross. It's important to note that wage rates and regulations may change over time, so it's advisable to refer to the latest information from the Ministry of Manpower or relevant government agencies for the most up-to-date details on minimum wage policies in Singapore.

Minimum hourly wage for part-time employees based on Local Qualifying Salary (LQS)

Salaries and wages for international employee

The workforce in Singapore is significantly bolstered by foreign employees, totaling almost 1.5 million individuals in a nation with a population of approximately 5.5 million. Salaries and wages for international employees in Singapore vary significantly depending on factors such as job category, skill level and nationality. Here are some key points:

• Income Distribution: Singapore's 2020 census data indicate that the monthly income for international workers, particularly those holding blue-collar jobs, ranges widely. For instance, around half of citizens and permanent resident expatriates earn between S$4,000 to S$4,999 per month.

• Ethnic Disparities: There are notable disparities in income distribution among different ethnic groups. Malays, for example, tend to have lower average incomes compared to Chinese, Indian, and other ethnicities. Around 60% of Malays reported earning less than S$3,999 per month.

• Skilled Roles: Expatriates in skilled roles, particularly in sectors like finance and technology, may command higher salaries compared to those in blue-collar occupations. However, specific data regarding their income distribution is not provided in the given information.

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Aniday - Recruitment Agency ensuring Employee’s Rights in Singapore

Despite their significant contributions to the economy, foreign workers in Singapore, especially those in blue-collar jobs, often face challenges due to limited legal protections. There are few laws governing their rights or ensuring fair wages, leading to instances of discrimination, exploitation and even violence. Therefore, agencies like Aniday play a crucial role.

Aniday acts as a vital intermediary, ensuring that foreign workers are fairly represented and advocating for their rights within the employment landscape of Singapore. By providing comprehensive support and guidance, such agencies help navigate the complexities of employment laws and ensure that workers receive fair treatment and just compensation.

Aniday - Job platform for opportunities in Singapore

Hope that this blog has addressed the question "Does Singapore have minimum wage?". In conclusion, while Singapore does not have a standardized minimum wage across all sectors, the implementation of initiatives like the Progressive Wage Model (PWM) underscores the government's commitment to ensuring fair compensation for workers in specific industries. Contact Aniday to find reliable job opportunities and reputable employers in the Singaporean market!

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