Strengthening Protections for Lower-income PMEs for Fairer Employment Terms and Working Conditions

Mr Melvin Yong Yik Chye asked the Acting Minister for Manpower whether the Ministry will consider strengthening employment protections for lower-income Professionals, Managers and Executives (PMEs) who may have limited bargaining power to negotiate fair employment terms and working conditions, including protections comparable to those available to lower-income non-PME workers.

Professionals, managers and executives (PMEs) are covered under the Employment Act (EA), which mandates basic protections including annual leave, sick leave and timely payment of salaries.

However, Part 4 of the EA which provides additional protections to lower-income employees, such as through higher overtime pay rates and limits on working hours, currently does not extend to PMEs.

The Ministry of Manpower and our tripartite partners recognise that PMEs are a key part of our workforce, comprising about 40% of all workers. They are also a diverse segment, whose roles and incomes can vary significantly. Lower-income PMEs may have limited bargaining power and would benefit from additional protections.

We are actively studying how to strengthen support for lower-income PMEs as part of the ongoing EA review. This includes considering how to extend appropriate protections while preserving the flexibility that many PMEs value. We will provide an update in due course.

Sir, I thank the Acting Minister for her response. I have two supplementary questions. First, does the Ministry agree that salary levels and bargaining power, rather than job classification alone, may be better indications of whether an employee requires statutory protection against excessive working hours and uncompensated overtime?

The second question pertains to lower-income PMEs whose working hours are prescribed by their employers and who have little practical ability to negotiate their work hours or overtime compensation. I do hear the Acting Minister saying there is some consideration, but would the Ministry consider extending some Part 4 protections to them as part of the ongoing EA review?

I thank the Member for his questions. On his first question, indeed, salary levels and bargaining power are definitely factors that we will consider together with job classification, when we review the statutory protections against excessive working hours and uncompensated overtime.

On his second question, indeed, we are considering extending some Part 4 protection to them as part of the EA review.