The Government aims to continue improving lower-wage workers’ lives through the Workforce Income Supplement Scheme and the Progressive Wage Model.
What is the Workfare Income Supplement Scheme?
The Workfare Income Supplement was introduced in 2007 to top up the salaries of lower-wage workers and help them save for retirement.
S$1.1billion set aside for Workfare in 2 years’ time
Payouts for Workfare recipients to be raised
Qualifying age of Workfare will be lowered from 30 years old, from current 35
What is the Progressive Wage Model (PWM)?
The Progressive Wage Model was developed to uplift lower-wage workers in the cleaning, security, landscaping and lift and escalator maintenance by mapping out a clear career pathway for their wages, with training to improve productivity and service quality.
Will the Progressive Wage Model be extended to more sectors?
Yes, the PWM will be extended to sectors such as retail (from 1 Sep 2022), followed by food services (1 Mar 2023) and waste management (from 2023).
The PWM will also be introduced to specific occupations across all sectors from 1 Mar 2023, such as administrative assistants and drivers.
What is the floor wage for all firms hiring foreign workers?
From 1 Sep 2022 onwards, all firms will have to pay at least the minimum salary salary to all its workers before it can hire any foreigners.
The current Local Qualifying Salary is set at S$1,400, which may be adjusted from time to time.
What is the PW Mark?
The PW Mark is to accredit all companies who are paying their workers progressive wages.
This helps consumers to be aware of which companies are paying all their workers decent wages.
The government will also take the lead and purchase from businesses that have been accredited.
Key highlight #2: Tightened Criteria for Foreign Work Pass Holders
Criteria for EP and S pass will be tightened gradually over time.
We would also like to share the following from the National Day Rally 2021:
The Tripartite Alliance for Fair and Progressive Employment Practices (Tafep) guidelines will be enshrined into law, to give the authorities a wider range of options to ensure fair workplace treatment. A tribunal will also be set up to deal with workplace discrimination, including discrimination based on nationality, gender, age, race, religion, and disability.
Payboy would also like to congratulate our customers Carro and Secret Lab for being featured during the National Day rally by PM Lee as Singapore firms who have become global names.
Find out how you can do it all with Payboy
Reach out to us if you are keen for a free demo on how we can help you save hours and give you some peace of mind on payroll and other HR matters so that you can focus on your business and people.
