New tripartite group to study how to raise pay of low-wage workers

A new tripartite work group will study how to increase the wages of more low-income workers and improve their well-being, beyond existing measures.

The Tripartite Workgroup on Lower-Wage Workers will be chaired by Senior Minister of State for Manpower Zaqy Mohamad and include industry leaders from the Singapore National Employers Federation, union leaders and senior civil servants from agencies that are involved with low-wage workers.

Yesterday, Mr Zaqy said the work group aims to provide a progress update by the middle of next year, and give its recommendations by early 2022.

It will propose interventions and mechanisms that will ensure that wage growth in mandatory progressive wage model (PWM) sectors continues to outpace median wage growth. Other goals are to significantly increase the number of low-income workers covered by PWMs, and offer progressive wages in occupations not covered by the mandatory PWMs.

The work group will also propose ways to recognise and promote stronger societal support for firms paying progressive wages, and to advance the well-being of low-income workers.

The PWM, which was developed by unions, employers and the Government, has helped to lift wages of workers in the cleaning, security and landscape sectors since it was introduced in 2012, said Mr Zaqy.

It lays out the minimum wages employers need to pay their workers, based on their individual skill levels. To rise up the wage ladder, workers attend skills courses to upgrade themselves.

Between 2014 and last year, the real wages of workers in these sectors rose by around 30 per cent - higher than the median of 21 per cent for all sectors, the Ministry of Manpower said yesterday.

In total, the PWM has benefited about 80,000 workers. In 2022, the lifts and escalator maintenance sector will be included under the PWM, the ministry added.

The Workfare Income Supplement (WIS), introduced in 2007, is among government measures implemented over the last decade to raise low-income workers' pay.

The WIS scheme boosts the income and retirement savings of about 400,000 low-income workers annually by up to 30 per cent, said MOM. From 2007 to last year, over $6.8 billion was given out to 890,000 low-income workers.

Number of workers the progressive wage model has benefited.

The WIS scheme boosts the income and retirement savings of about 400,000 low-income workers annually by up to this percentage, said MOM.

Meanwhile, the Workcare initiative was launched last year to improve the work environment of low-income workers, such as by providing proper rest areas for cleaners and security officers.

Mr Zaqy said yesterday that the work group will examine issues faced by low-income workers in a holistic manner.

"The study that we plan to do has to be wide-ranging, to see how we can create a win-win with the employers, unions and workers, to see how different sectors can be improved and go as far as they can (in wages)," he added.

It will also "keep an open mind" and look beyond the progressive wage model to see what will work best in raising wages for these workers in different sectors, he said.

Mr Zaqy was visiting a DBS branch in Marina Bay Financial Centre yesterday. During the visit, he also met the branch's cleaning service provider Spic & Span, which shared how it is boosting career progression prospects of low-wage workers through the use of technology.

Mr Zaqy said the work group will be sensitive to business conditions so that any measures proposed do not discourage companies from hiring these workers.

Mr Mohd Fahmi Aliman, director of operations and mobilisation division secretariat at the National Trades Union Congress, said: "This work group will give us the opportunity to continue to look after our workers... It is a work in progress. There are many sectors that we need to continue to reach out to, to help them understand the benefit of the PWM."