Ask NUS Economists

Progressive Wage Model v minimum wage: Why not both?

The two policies need not be mutually exclusive. Rather, they complement each other as they serve different purposes.

In the cleaning industry, the Progressive Wage Model applies only to workers employed by licensed firms.PHOTO: ST FILE

A: Singapore is one of the few developed countries without a minimum wage policy. In its stead is the Progressive Wage Model (PWM), also termed "minimum wage plus".

According to the Ministry of Manpower, the PWM "helps to increase wages of workers through upgrading skills and improving productivity". Wage ladders in each sector mandate a minimum basic monthly salary tied to the job responsibilities assigned to the worker as well as the training received by the worker.

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