Implementing Progressive Wage Credit Scheme as a More Long-term Feature

Mr Shawn Loh asked the Minister for Manpower whether the Progressive Wage Credit Scheme can be made a more long-term feature so as to moderate increasing business costs while encouraging the continued narrowing of the wage gap in our economy.

The Progressive Wage Credit Scheme was introduced in 2022 as a transitionary support scheme to help businesses defray the costs of adjusting to lower-wage worker policy moves, such as the expansion of the Progressive Wage Model to cover more sectors and occupations. The intent is for employers to use this period of transition support to invest in upskilling their employees, transforming their businesses and improving productivity to ensure that wage increases are sustainable in the long-term.

We are reviewing the scheme and will provide updates in due time.