New Sectors Considered for Implementation of Progressive Wage Model

Mr Leon Perera asked the Minister for Manpower (a) what new sectors are being considered for implementation of the progressive wage model beyond security, cleaning and landscaping sectors; and (b) whether the progressive wage model will be implemented in the eldercare sector.

The Progressive Wage Model (PWM) provides a clear progression pathway for workers to earn higher wages as they become more skilled, more productive and take on higher job responsibilities. PWM has been implemented in the cleaning, security and landscape sectors as a targeted intervention to address low and stagnant wages caused by cheap sourcing. The PWMs in these sectors have led to wage growth for more than 70,000 resident workers. Between 2011 and 2016, the real median gross wages of full-time resident cleaners, security guards and landscape maintenance workers increased by 5.7%, 6.4% and 3% per annum respectively, higher than resident median income growth.

Each PWM is developed through extensive tripartite negotiations, taking into consideration sector-specific issues, such as past and prevailing wages, working conditions and the required skills for the relevant jobs. The PWMs are also regularly reviewed by the tripartite committees to ensure that they remain relevant and aligned with the sectors' industry transformation goals. The Government continues to work closely with the tripartite partners to develop, promote and adopt PWMs in other sectors on a voluntary basis, such as for bus captains and baggage handlers.

It was earlier announced that the tripartite partners are exploring a PWM for the lift sector to attract more skilled workers into the sector and improve service quality. Discussions are at an advanced stage and more details will be released in the Sectoral Tripartite Committee’s report soon.

For the eldercare sector, the Ministry of Health (MOH) has provided funding support between 2012 and 2017 to raise the wages of workers. Local eldercare workers' salaries of providers that have tapped on this funding have increased by an average of around 30% over this period. MOH also supports skills training scholarships and grants, and productivity improvement and job redesign initiatives, to raise the value of jobs alongside salary increases in line with the intent of the PWM. MOH will continue to work with the employers to review salaries of workers regularly to ensure that they are adequately recognised for their efforts. MOH will study if further efforts are needed, including whether to introduce a PWM for the eldercare sector with the tripartite partners.