Uplifting lower-wage workers

INSIGHT

Senior Ministers of State

Zaqy Mohamad and Chee Hong Tat discuss the multi-layered approach to uplift lower-wage workers

Uplifting Lower-Wage Workers

SKILLS TRAININGMANUAL

Bringing more lower-wage workers into Singapore’sgrowth

The PAP Government, true to its mission of ensuring the benefits of progress are spread widely to all, will uplift our lower-wage workers with enhanced Progressive Wage coverage as part of our multi-layered support for them

When the Covid-19 pandemic struck Singapore in early 2020, thousands of lowerwage workers were on the frontline to keep essential services going and the economy humming as best as possible.

As a result, Singaporeans saw the importance of jobs like cleaning, food delivery and security, and there was fresh respect and appreciation for these workers, said PAP Secretary-General and Prime Minister Lee Hsien Loong at the National Day Rally at Mediacorp on August 29, 2021.

He outlined how the PAP Government has ensured the lower-wage workers and their families receive “significant support” for their basic needs.

For housing, they receive HDB subsidies and get access to rental flats. In healthcare, there are hospital subsidies, the CHAS (Community Health Assist Scheme) scheme and the MediFund endowment fund. They receive regular top-ups to their Central Provident Fund (CPF) accounts and Silver Support for their retirement while for education, the Government has in place a major effort to help their children do well in school and beyond.

But despite all these, Mr Lee noted how lower-wage workers are more stressed than others during the pandemic. Their jobs are less secure, they are more likely to

This is the ambitious roadmap drawn up by the Tripartite Workgroup on Lower-Wage Workers. The recommendations will uplift the wages and well-being of some 234,000 (82%) lowerwage workers. In fact, up to 94% stand to benefit, with the launch of the Progressive Wage Mark.

“The extended Progressive Wages plus the tighter Local Qualifying Salary will cover 8 in 10 lowerwage workers. If we include the Workfare enhancements, almost all lower-wage workers can look forward to higher incomes within the next two years.” — PM Lee Hsien Loong

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be retrenched, and have less savings to fall back on to tide them through tough times.

“That is why, in every Covid-19 Budget Package, we included extra help for lowerincome households,” pointed out the PM.

Beyond such emergency help, he stressed that lower-wage workers need longer term support too.

“The Government has helped them upgrade their skills, use machines and technology, and become more productive,” he said, adding that there are also specific policies in place to raise their incomes.

Higher Workfare payouts

One key policy that has served Singapore’s lower-income groups well over the years is the Workfare Income Supplement (Workfare) scheme. It is effectively a negative income tax where, instead of taxing the incomes of lowerwage workers, the Government goes on to top up their salaries in cash and CPF contributions.

Nearly 500,000 workers benefit from Workfare and this costs the Government $850 million a year. It plans to increase this annual expenditure to $1.1 billion by 2023, which will enable more payouts for all recipients. Younger lower-wage workers will also benefit from the lowering of Workfare eligibility to age 30, from the current 35 years old.

The Progressive Wage Model (PWM) is

“Economic growth is a means to an end, not an end in itself. It must be inclusive growth that benefits all Singaporeans, so that we can all fulfil our aspirations, and see our children live better lives than ourselves. This is how Singaporeans have been uplifted, generation after generation.”

— PM Lee Hsien Loong

workers.

The PM said the Government has accepted the three strategies recommended by a tripartite workgroup to uplift lowerwage workers. One strategy is to extend progressive wages to workers from more sectors, starting with retail in 2022, followed by food services and waste management. Administrative assistants and drivers across all sectors will also be covered.

Providing lower-wage workers with secure futures

The committee’s second strategy is to require companies hiring foreign workers to pay all their local staff at least a monthly Local Qualifying Salary of $1,400, which will be adjusted from time to time. And third, a Progressive Wage Mark will be introduced to accredit firms that pay all their workers progressive wages. Mr Lee said the public sector will take the lead and purchase only from businesses that have this accreditation.

As these measures take effect, he said consumers should expect to share the cost of these higher salaries for lower-wage workers as businesses inevitably have to pass on some of these added expenses to customers. The Government will help companies with transitional support.

another policy that has benefitted lowerwage workers. It covers cleaners, security guards, landscaping and lift maintenance workers who have seen their skills and productivity raised, and incomes and job progression boosted.

With progressive wages, every cleaner earns at least $1,200 a month. The salary is set to go up to a minimum of $1,500 in 2023, and $1,900 in 2025. Over time, the cleaners will also have picked up new skills and become more productive, said Mr Lee, noting that this trend is similar for security guards, landscaping and lift maintenance

A specific group of lower-wage workers was singled out for his concern: delivery workers who work with popular online platforms such as Deliveroo, Food Panda and Grab. These workers have no employment contracts and lack basic job protection such as workplace injury compensation, union representation and employer CPF contributions, he noted.

“More people are taking up this type of work, so this problem is growing. The Ministry of Manpower is studying it and will be doing consultations. We must address the issues to give these workers more secure futures,” he said.

Concluding, the PM said Covid-19 will not be our last crisis but he is confident that Singapore will prevail. “We have done it before. We will do it again.”

Our MPs welcome more inclusive support for lower-wage workers

Manpower Minister and Members of Parliament give their reactions to Prime Minister Lee Hsien Loong’s National Day Rally speech on August 29, 2021 about enhanced support for our lower-wage workers

Dr Tan See Leng

“It was a very reassuring and encouraging speech which reminds all of us about our collective aspirations to support our lower-wage workers and to bring more of them into our growth story. It is more encompassing and seeks to reach out to the vast majority of our lower-wage workers and uplift them.

The Progressive Wage Model, Local Qualifying Salary and Progressive Wage Mark alongside with Workfare Income Supplement (WIS) scheme will in the next few years uplift up to 8 in 10 of all lower-wage workers. The gradient of the progression will also be considered carefully with consultations from our tripartite partners and to ensure that it is sustainable over the medium to long term.

My predecessor, Minister Josephine Teo has worked with the tripartite partners as adviser and provided support and guidance over the last 10 months to lay this foundation. Kudos to her, Senior Minister of State (Manpower) Zaqy Mohamad, NTUC Secretary-General Ng Chee Meng and Singapore National Employers Federation President Robert Yap for this very meaningful initiative and my deepest gratitude to members of the task force who have laboured tirelessly over the past 10 months, often into the wee hours of the morning to lay the foundation for uplifting lowerwage workers.

The PAP’s fundamental policy is to provide and protect the livelihoods and create meaningful jobs for all Singaporeans.”

“The PAP GPC for Manpower has and will be gathering input from stakeholders to ensure we cover the blind spots for smoother policy implementation.

We must study transitory support for businesses ― many of which are still suffering from Covid-19 loss of demand. The impact on the Singaporean consumer must also be top of our minds.

But I am confident that this is the correct and equitable direction for the Singapore workforce and economy. When every worker is paid a decent wage for a decent day of work, where every worker plays on an even playing field and workplace, when every Singaporean enjoys an equitable share of economic growth, these are goals that we can work towards in spite of any difficult challenge.”

Manpower Minister and MP for Marine Parade GRC

MP for Tampines GRC and Chair of Government Parliamentary Committee (GPC) for Manpower

Desmond Choo

Patrick Tay

“Saktiandi (Supaat, MP for Bishan-Toa Payoh GRC), Louis (Ng, MP for Nee Soon GRC), myself and other PAP Members of Parliament have been calling for and lobbying these past years for tougher measures to weed out workplace discrimination by egregious companies out to exploit the system. I am glad to hear that we will expect tougher laws as a stronger deterrence against discriminatory practices by errant employers.”

Edward Chia

“It is crucial that we continuously uplift the wages of our lower-wage workers. Every worker makes a meaningful contribution to our economy and society.

I believe the key task ahead is to ensure wage increases are sustained. It is imperative that wage increases are sustainable. As employers and employees are two sides of the same coin, we must support employers to remain viable and grow collectively with their employees.”

Yeo Wan Ling

“As the gig economy gains momentum and evolves, we have seen different work arrangements between platforms and their workers. Those that delivery riders have with platforms are employeelike but they lack the job protection that most employees have.

The Labour Movement has been pushing for more protection and safety nets for our platform workers and we have called for better workplaces, balanced terms and conditions and enhanced medical and injury coverage. I am heartened the Government recognises that our platform workers need to be better represented and protected. Let us continue to build an inclusive society, with dignity and grace for all our fellow Singaporeans.”

“The pandemic has shown that lowerwage workers are essential to our society. Our expansion of the Progressive Wage Model to almost 8 in 10 lower-wage workers shows that we value them and will not leave them behind.”

MP for Holland-Bukit Timah GRC, deputy Chair of GPC for Manpower

MP for Pioneer SMC

MP for Pasir Ris-Punggol GRC and Member of GPC for Manpower

MP for Marine Parade GRC and Member, Tripartite Workgroup on Lower-Wage Workers

Mohd Fahmi Aliman

Retail workers will be next in line to be included in the Progressive Wage Model, after those in the cleaning, security, landscape and lift maintenance industries.

经济政策 渐进式薪金模式是 也是 社会契约

李显龙总理于8月29日在国庆群众大会上宣布一系列扶 助低薪员工的措施，包括增加就业入息补助和扩大渐进 式薪金模式覆盖范围，让更多的低薪员工受惠。

国职工总会副秘书长徐芳达说，由劳资

政三方紧密合作推行的渐进式薪金模式 （Progressive Wage Model, PWM），不仅是一 项提升低薪员工技能、薪金和福利的经济政策，也是促进 我国社会稳定团结的社会契约。

他指出，这个社会契约以人民、劳资政合作伙伴之间 建立起来的互信和感情为基础，让我们能够打造一个具 国际竞争优势的亲企业、亲员工大环境。有了互信，大家 才能够同甘共苦，面对未来的挑战。“社会契约要得到大 家的共识与支持，不是一朝一夕的事；需要时间和努力， 培养感情，增加互信。社会契约也不能一成不变，必须与 时并进，不断更新。”他进一步地说明。

针对李总理在国庆群众大会上宣布帮助更多低薪员 工的配套措施，徐芳达说，劳资政合作框架以人民行动党

2021年8月20日，职总副秘书长徐芳达（红衣驾车者）和人力部高级政 务部长扎吉哈（白衣驾车做手势者）到滨海湾花园，了解园景业如何利 用电动工具车来提高生产力。

“行动党坚信，要建设一个公 平、公正的社会；打造这样的环 境，需要雇主、政府和工会，劳资政三方合 作，才能达到最佳效果。渐进式薪金模式会 比最低工资更能有效地帮助员工，是因劳 资政三方的共识，而共识又是以行动党和

职总长年建立起来的共生关系为基础。”

—职总副秘书长徐芳达

和职总多年来建立的共生关系为基础。“人民行动党坚 信，要建设一个公平、公正的社会，这包括让低薪员工的 生活有实质的提升。要打造这样的社会环境，需要雇主、 政府、跟工会，劳资政三方面的合作，才能够达到最好的 效果。”

也是交通部高级政务部长和碧山-大巴窑集选区 议员的徐芳达解释，相对于在一些国家实施的“最低工 资”，渐进式薪金模式更能为低薪员工提供可持续性的 保障，他们在接受培训、提升技能的同时，也能从薪金增 长，职能发展中受惠。这还能降低低薪员工面对失业的风 险，那就是：雇主因为“最低工资”开支增加、于是减少聘 用技能达不到要求的雇员。

推行渐进式薪金模式的企业，将获得政府给予过渡 补助，缓和成本上涨的压力。通过提升员工的技能，企业 能提高整体的生产力和竞争力。另一方面，政府进一步加 强就业补助计划（Workfare Income Supplement, WIS）， 调高补助金额和调低符合补助条件的年龄，让更多低薪 员工受惠。徐芳达说，通过劳资政的合作方式，政府也协 助雇主分担提升员工收入的成本。

他也强调，在劳资政三方合作的框架下所推出的种 种计划和配套，不仅仅是应付疫情，在疫情过后还得应付 新的挑战。虽然我们将面对更多的竞争，但也会有新的机 遇。他相信在劳资政合作框架下的优势，加上新加坡克服 疫情而增强的弹性和韧性，将能够增加我们成功的机会。

Progressive Wages More lower-wage workers to benefit from multi-layered

A strong tripartite framework and a targeted sectoral approach have enabled Progressive Wages to effectively uplift all lower-wage workers in Singapore

Since Workfare and the Progressive Wage Model were introduced in 2007 and 2012 respectively, they have been among Singapore’s most effective tools in uplifting the wages and lives of lower-wage workers.

Over the past decade, the multi-layered support has helped lower-wage workers to enjoy higher income growth than the average worker, especially in the last five years.

Thus, the latest announcement by Prime Minister Lee Hsien Loong at the National Day Rally 2021 to expand the multilayered Progressive Wages framework was welcomed by many. Among the 18 recommendations is that Progressive Wages will be extended from the cleaning, security and landscape sectors to retail, food services and waste management. It will also be expanded to administrators and drivers, across industries.

Mr Zaqy Mohamad, who chairs a Tripartite Workgroup on Lower-Wage Workers which was formed last year, said: “As a society, we take care of every worker and leave no one behind, especially our lower-wage workers. Our workers are not just the backbone of the economy. Their livelihoods provide for their families, who are the backbone of our society,” said the Senior Minister of State in the Ministry of Manpower and Defence.

Success through tripartism

The strength of Progressive Wages lies

in the strong tripartite relationship between the people, Government and the unions. The three parties work together to move forward in agreement on wage structures and progression, as well as relevant training requirements.

“Collectively, achieving progress for lower-wage workers can be a win-win prospect, rather than a zero-sum game,” he said.

Instead of a one-size-fits-all approach, Progressive Wages allows for a different rate of progress between sectors. This was demonstrated during the Covid-19 pandemic.

“A blunt minimum wage may not have been able to achieve consensus or wage growth, especially in tourism, aviation, hospitality and other sectors that were severely impacted by Covid-19,” he said.

“Our targeted approach has enabled the tripartite movement to advance Progressive Wages at a pace based on how the respective sectors perform in the market.”

Source:

Uplifting wages and skills in a sustainable manner

The multi-layered approach of Progressive Wages includes the Workfare Income Supplement (Workfare) scheme under which the Government tops up the salaries of lower-wage workers in cash and CPF contributions.

In addition, the Local Qualifying Salary (LQS) will be expanded. Companies will have to pay all their local employees this LQS if they want to hire any foreign employees. The PW Mark will be introduced to enable society to support firms which pay their workers Progressive Wages.

Going forward, Progressive Wages will further improve the salaries and work conditions for 283,000 or up to 93 per cent of our lower-wage workers.

He said: “The PAP Government commits itself to ensuring that no one is left behind in Singapore. Alongside supporting schemes for housing, education, CPF and healthcare which are important to level up society, our focus on enhancing Workfare, skills development to career ladders will ensure that our workers will progress and have their share of benefits from our economy.

“If our moves are successful, it can set the bar on how Singapore uplifts lowerwage workers sustainably and create a win-win condition for the worker and the employer so that Singapore is united and progresses as one.”

SMS Zaqy Mohamad meeting with lower-wage workers @ Discover & Discuss Visit to Jurong Point for the Workcare Grant Launch.

Ministry of Manpower

to uplift our lower-wage workers Multi-layered approach

As a fair and inclusive society, we must accord our lower-wage workers with dignity and respect, and pathways to progress. This requires a whole-of-society effort, with support from the Government, employers, unions, service buyers, and fellow Singaporeans.

Progressive Wage Model (PWM) has been implemented in the cleaning, security, landscape, and lift and escalator maintenance sectors. It will be extended to cover more sectors, such as retail, food services, and waste management. The Government will also introduce new Occupational Progressive Wages to Administrators and Drivers from Mar 2023.

Workfare is a broad-based measure comprising:

1) Workfare Income Supplement (WIS) Scheme

2) Workfare Skills Support (WSS) Scheme

Workcare aims to improve the work environments of essential services workers and strengthen public appreciation for the work that they do. Building owners can tap on the Workcare Grant to enhance working conditions for their outsourced essential services workers.

Workright protects the employment rights of workers through public education and enforcement of the Employment Act and the CPF Act.

One-stop Centre for Lower-Wage Workers

NTUC U Care Centre (UCC) provides guidance on employment-related issues and job and training referrals. UCC oversees the PWM for various sectors and provides workers with information on the PWM baseline wages and training requirements. Working with the Tripartite Alliance for Dispute Management, the centre also assists workers with salary claims and financial assistance.

One Marina Boulevard, Level 10, Singapore 018989

Email: ucarecentre@ntuc.org.sg

Operating Hours: Mondays to Fridays: 9am to 6pm Closed on Saturdays, Sundays and Public Holidays

Meet-the-People session

Singaporeans and Permanent Residents may also approach your respective Members of Parliament during their Meet-thePeople session for assistance.