GE2025: Calls for universal minimum wage more political than practical, says PAP’s Jeffrey Siow

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Instead of a universal minimum wage, the PAP Government’s approach is much more precise and aimed at sectors where workers need to be uplifted

the PWM sets wage ladders for certain sectors, such as security, cleaning and landscape among others, to keep wage growth sustainable.

Progressive Wage Model (PWM) has worked as it is a collaborative effort that involves the tripartite partners: employers, unions and the Government.

PWM has ensured that a range of workers today – including security officers, lift maintenance and landscape workers – all have their own base wages, and also a salary ladder they can climb as they upgrade themselves.

If the bar is set below the current market wage, then there is no actual impact and is “just a political announcement”. But if it is higher than the market wage, it would force wages at the bottom up, and there would be additional costs that businesses would have to bear.

PWM has ensured that a range of workers today – including security officers, lift maintenance and landscape workers – all have their own base wages, and also a salary ladder they can climb as they upgrade themselves.

Qn: How realistic is it for countries to implement a national minimum wage for all their workers? (Cam. 2023)