Percentage of Outcome-based Cleaning Contracts with Implementation of Progressive Wage Model for Cleaning Sector

Ms Yeo Wan Ling asked the Minister for Sustainability and the Environment in the implementation of Progressive Wage Model for the cleaning sector where outcome-based contracts are encouraged (a) whether the Ministry tracks the percentage of cleaning contracts in Singapore that are now outcome-based; and (b) if so, what is the percentage.

To uplift wages and jobs in the cleaning industry, the Progressive Wage Model (PWM) for the cleaning sector has been implemented under the cleaning business licensing regime since September 2015. All licensed cleaning businesses are required to implement PWM.

The PWM works in conjunction with the other strategic initiatives under the Environmental Services Industry Transformation Map (ES ITM) to engage stakeholders and uplift the industry. Service buyers are encouraged to adopt outcome-based contracting when procuring cleaning services. This is done by adjusting procurement practices to focus on outcomes instead of deployed headcounts. This facilitates the adoption of technology, as well as optimisation of work processes and manpower deployment, thereby improving productivity.

The National Environment Agency (NEA) has been working with industry partners such as the Tripartite Cluster for Cleaners to promote the adoption of outcome-based contracting. As of 23 September 2022, the adoption rate of outcome-based contracting amongst large service buyers is about 40%.