Progressive Wage Model (PWM) Singapore 2026: An Employer’s Compliance Guide

Correction reviewed on 23 October 2026: The LQS passage and related coverage and quota-count explanations have been corrected for the rates effective from 1 July 2026.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

What Is the Progressive Wage Model?

The Progressive Wage Model (PWM) is a Singapore government initiative that sets out minimum wage levels and career progression pathways for workers in specific sectors. Unlike a blanket minimum wage, the PWM links wage increases to skills upgrading and productivity improvements, ensuring workers are paid more as they become more skilled.

Administered by the Ministry of Manpower (MOM) and sector-specific tripartite clusters, the PWM has expanded significantly in recent years. As of 2026, PWM coverage spans multiple sectors and also includes the Progressive Wage Mark accreditation for businesses.

Sectors Covered by PWM in 2026

The PWM currently applies to the following sectors:

• Cleaning – one of the original PWM sectors, with tiered wage scales for different cleaning roles
• Security – covers security officers across various licence grades
• Landscape – applies to landscape workers including horticulturists and arborists
• Lift and Escalator – covers technicians and mechanics in this sector
• Retail – expanded to retail sector workers from 2023 onwards
• Food Services – encompasses food stalls, restaurants, and catering operations
• Waste Management – covers workers in the environmental services sector
• In-house cleaners, security officers and landscape workers: check the applicable PWM coverage and wage schedule for the role; do not use LQS as a substitute where a PWM applies.

Employers in covered sectors must comply with PWM wage requirements as a condition of employing foreign workers and maintaining valid work pass quotas.

PWM Wage Scales and Requirements for 2026

PWM wage scales are reviewed periodically by tripartite clusters and adjusted to reflect productivity improvements and cost-of-living considerations. For 2026, employers should verify the latest wage requirements with MOM or the relevant sector tripartite committee.

Key principles across all sectors:

• Wages are tied to job roles and skill levels, not just seniority
• Workers must receive at least the prescribed minimum basic wage for their job level
• Wage increases are expected as workers attain higher skills or qualifications
• Training requirements accompany wage progression milestones

Local Qualifying Salary (LQS)

Firms that employ foreign workers, including Employment Pass, S Pass or Work Permit holders, must pay local employees covered by a relevant sectoral or occupational PWM the applicable progressive wages. Other local employees must receive at least the Local Qualifying Salary (LQS). The LQS is not a substitute for a higher applicable PWM wage.

From 1 July 2026, the LQS for full-time local employees working 35 to 44 hours a week is S$1,800 gross per month. Local part-time employees working fewer than 35 hours a week must receive at least S$10.50 gross per hour. For work above 44 hours a week, the LQS requirement rises with overtime under MOM’s wage schedule. The MOM announcement of the increase confirms its effective date.

Pay compliance and quota counting are separate checks. An eligible Singapore citizen or permanent resident employed under a contract of service counts as one local worker for quota purposes at a monthly salary of at least S$1,800, or half a local worker at S$900 to below S$1,800. A part-timer can meet the hourly wage requirement without earning enough in the month to count towards quota. Firms that fail the progressive-wage and LQS requirements cannot apply for new work passes or renew existing ones.

Progressive Wage Mark (PW Mark)

The Progressive Wage Mark is a voluntary accreditation scheme for businesses that pay their workers progressive wages. From 2022, the government progressively required public sector contractors and businesses receiving government grants to hold the PW Mark.

From 1 March 2023, all businesses must declare that they are a PW Mark-accredited employer or a PW Mark-exempt employer (i.e., not employing any PWM-covered workers) when applying for certain government grants and schemes. This includes SFEC, EDG, and various MOM-administered programmes.

To obtain the PW Mark, employers must:

• Pay all PWM-covered workers at or above the PWM wage requirements
• Pay other local workers who are not covered by PWM at least the LQS
• Submit payroll data via the designated portal for verification
• Renew accreditation annually

Employer Compliance Obligations

Employers with workers in PWM-covered sectors must ensure the following:

• Payroll compliance: Basic wages must meet or exceed PWM minimums for the relevant job level. Variable components (allowances, bonuses) generally do not substitute for basic wage requirements.
• Training and skills upgrading: Workers must be supported in attaining the relevant Workforce Skills Qualifications (WSQ) or other stipulated certifications tied to PWM wage tiers.
• Record-keeping: Maintain proper payroll records that can be produced for MOM audits. Records should clearly reflect job roles, wage components, and training completed.
• Foreign worker quota compliance: Check the local workforce count separately from wage compliance. Eligible locals earning at least S$1,800 a month count as one; those earning S$900 to below S$1,800 count as half. Follow MOM’s full quota calculation rules.
• Timely reporting: Report payroll data to the relevant sector portal where required.

Consequences of Non-Compliance

MOM takes PWM enforcement seriously. Employers found to be non-compliant may face:

• Reduction or suspension of foreign worker quota entitlements
• Ineligibility for government grants and support schemes
• Loss of Progressive Wage Mark accreditation
• Financial penalties or prosecution under the Employment Act for underpayment
• Reputational consequences, particularly for businesses tendering for public sector contracts

PWM and Employment Pass / S Pass Holders

PWM wage requirements discussed here apply to covered local employees. Employing foreign workers does not place those workers on local PWM wage scales. Firms hiring EP, S Pass or Work Permit holders must still meet the applicable progressive-wage and LQS conditions for their local staff, as well as the separate requirements for each foreign worker’s pass.

Practical Steps for Employers

To ensure ongoing PWM compliance, employers should take the following steps:

1. Identify coverage: Determine which of your job roles fall within PWM-covered sectors or the LQS requirement.
2. Review current wages: Compare existing pay scales against the latest PWM wage tables for the relevant sector and job level.
3. Implement wage adjustments: Where gaps exist, plan and implement wage increases in line with PWM timelines.
4. Enrol workers in training: Map out the WSQ or other certifications required for the next wage tier and enrol workers accordingly. Tap on SkillsFuture and SFEC funding where available.
5. Apply for PW Mark: Obtain accreditation to remain eligible for government grants and public sector work.
6. Set up payroll records: Ensure payroll software or records clearly document PWM-compliant wages by job role.

How Raffles Corporate Services Can Help

Navigating PWM compliance alongside your other HR and payroll obligations can be complex. Raffles Corporate Services provides payroll management and HR advisory services to help Singapore employers stay compliant with MOM requirements including the PWM, LQS, and CPF obligations. Contact us to find out how we can support your business.