Lower-wage retail workers to receive up to 6% pay bump from Sept 1

SINGAPORE – Lower-wage resident retail workers can expect an annual salary bump ranging from 5.1 per cent to 6 per cent over the next three years. 

Full-time retail staff will receive these increments, amounting to $130 to $160 per year, from Sept 1, 2025, to Aug 31, 2028.

Part-timers who work less than 35 hours a week can also expect an increase of close to 6 per cent in their hourly gross pay from Sept 1, before further hikes in subsequent years.

The pay increase from Sept 1, 2027, is subject to review in 2026, as it may be adjusted upwards if the economic situation improves.

The announcement was made by the Tripartite Cluster for Retail Industry (TCR) on Aug 11, after the Government accepted its new recommendations on the Progressive Wage Model (PWM) for the retail sector.

The recommendations were drawn up after close to nine months of consultations with the unions, retail employers, industry associations and government representatives. Over 300 retail workers were also surveyed.

TCR introduced its

first set of recommendations in 2022

, leading to an annual pay hike of 8.4 per cent to 8.5 per cent over three years for lower-wage retail staff who are Singaporeans and permanent residents.

In a press release on Aug 11, the National Trades Union Congress (NTUC) said TCR has taken a “balanced and pragmatic approach” while proposing the new round of more modest wage hikes, given the challenges facing employers in the retail sector.

Many of them are grappling with rising operational costs, a manpower shortage, growing competition from e-commerce platforms as well as overseas retail options, especially with the

Johor Bahru-Singapore Rapid Transit System (RTS) Link set to begin operations in early 2027

.

Minister of State for Manpower Dinesh Vasu Dash noted that the global uncertainties will also be taken into consideration.

“The Government is also watching the economic outlook closely, and if there’s a requirement for us to make further changes along the way, we will consider that as well,” he told reporters during a visit to Far East Flora Centre on Aug 11.

Under the new recommendations by TCR, entry-level retail workers will receive a monthly gross salary of at least $2,305 from Sept 1, up from the current $2,175. This excludes their overtime pay.

Those who are more senior will see their baseline pay go up from $2,395 to $2,535 from Sept 1.

For assistant retail supervisors, the baseline pay will rise from $2,635 to $2,790 from Sept 1, and will hit $3,100 from Sept 1, 2027.

Far East Flora retail supervisor Joey Ong, 51, told The Straits Times that the pay hike will boost his ability to provide for his family.

Introduced in 2012, the PWM aims to uplift workers’ wages through skills upgrading and productivity improvement. It has been implemented in sectors such as cleaning, security and landscape, as well as lift and escalator maintenance.

More than 53,000 workers in the retail sector are now covered under the PWM, up from 46,000 in 2022. Those among them who earn less than the minimum recommended wages will receive a pay rise.

As at 2023, there were over 24,500 retail enterprises in Singapore, employing about 142,000 workers.

To help businesses adjust to the higher labour costs, eligible employers will receive co-funding of up to 40 per cent of the salary increase in 2025, and 20 per cent in 2026.

“This will alleviate cost pressures, while enabling businesses to drive transformation efforts to enhance productivity and raise wages sustainably,” the Ministry of Manpower said in a press release.

ST has contacted the Singapore Retailers Association for comment.

In its new recommendations, TCR also called for an enhanced career ladder for retail staff, and more training options for them.

For example, those who hold relevant diplomas or certificates from Ngee Ann Polytechnic, Republic Polytechnic, Nanyang Polytechnic and the Institute of Technical Education should be recognised as having met the minimum training requirements under the PWM.

NTUC secretary-general Ng Chee Meng said in a Facebook post on Aug 11 that he is heartened that TCR has recommended not just annual wage increases but also expanded training opportunities and clearer career pathways for retail workers.

“These reflect a belief that every worker deserves the chance to progress with dignity,” he said.

TCR chair and NTUC assistant secretary-general Yeo Wan Ling said that with the wage increase and more support for skills upgrading, she hopes to position retail as a dynamic sector with meaningful, long-term career opportunities for Singaporeans.

“It’s important that we continue to bring fresh, new blood into the sector,” she told reporters during her visit to Far East Flora Centre. “What’s quite encouraging is that we are starting to see a lot more tertiary-level students coming into the industry.”

She added that there is often a silver lining behind risk factors like the completion of the RTS Link, which might encourage more Singaporeans to shop in Johor.

“I will also expect to see a lot more cross-border type of job roles that are coming up. This could be something that is very interesting for some of our younger workers,” Ms Yeo said.