Singapore's MOM suspends work pass privileges of two retail employers for non-compliance with PWM requirements

Both employers were found to have underpaid a total of 12 retail employees about S$450 a month per person since April 2023.

A majority of employers inspected by Singapore Ministry of Manpower (MOM) recently are compliant with the Progressive Wage Model (PWM) requirements, the ministry has shared.

The ministry said that following the run-in period, it had conducted inspections on 4,100 retail and food services firms from April 2023 to March 2024, given that a significant number of local full-time workers (87,000) were covered under the newly introduce PWMs. As noted by the ministry, some of the employers involved in the inspections were unfamiliar with the PWM requirements and were initially not compliant but have since rectified their wages following MOM's explanation.

While this was so, MOM added, two errant employers remained non-compliant despite several rounds of engagements by the ministry to rectify their workers' wages. Both employers operate retail shops and were found to have underpaid a total of 12 retail employees about S$450 a month per person since April 2023. As such, MOM has suspended the employers from access to apply or renew work passes for foreign workers until they rectify the underpayments.

"MOM will continue to conduct checks on PWM compliance across sectors and work with the Tripartite Partners and the PWM sectoral leads (Building and Construction Authority, National Environment Agency, National Parks, and Singapore Police Force) to educate and help employers meet their PWM requirements, as well as workers on their rightful wages", the ministry highlighted. It also urged employers who need help understanding the PWM to sign up for a series of subsidised upcoming workshops on the Progressive Wages.

MOM further reminded: "To better support employers in adjusting to the PWM wage increases, eligible employers will automatically receive co-funding support under the Progressive Wage Credit Scheme (PWCS). In 2023, over 70,000 employers received a total of about S$1bn in PWCS co-funding support for PWM wage increases implemented in 2022.

"This year, the co-funding levels will be raised from 30% to 50%, for wages up to $2,500, and 15% to 30% for wages above S$2,500 and up to S$3,000."

Employees can log in to the Progressive Wage Portal using their SingPass to check if they are getting the correct wages according to their PWM job level; as well as to check the Workfare Income Supplement (WIS) payouts they have received if they are eligible, and their wages inclusive of their overtime pay.

Today, the PWM covers more than 155,000 lower-wage workers across nine sectors and occupations in Singapore. For each newly introduced PWM, a six-month run-in period was implemented to give employers time to adjust to the new requirements, and this has since concluded for all sectors.

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