Further Support to Employers when Progressive Wage Credit Scheme Ends in 2028

Mr Melvin Yong Yik Chye asked the Minister for Manpower (a) whether the Government has plans to provide further support to employers in the Progressive Wage Model sectors when the Progressive Wage Credit Scheme ends in 2028; and (b) if not, why.

The Progressive Wage Credit Scheme was introduced in 2022 as a transitionary support scheme to help businesses defray the costs of wage increases to support lower-wage workers, including those under the Progressive Wage Model requirements. Employers are encouraged to use this period of transition support to invest in upskilling their employees, transforming their businesses and improving productivity so that wage increases are sustainable.

As we had just announced an increase in co-funding for wage increases given in 2026 and to extend support for two more years, it is premature to discuss plans beyond 2028. We will continue to monitor the global situation and review our policies, so that lower-wage workers are supported through sustainable wage increases.