Clarification by Senior Minister of State for Manpower
Ministry of ManpowerSpeakers
Summary
This clarification concerns factual corrections made by Senior Minister of State Mr Zaqy Mohamad regarding wage requirements and structures within the Progressive Wage Model (PWM). He corrected the 2016 security officer wage requirement to $1,100, noting it will rise 220% to at least $3,530 by 2028, lifting workers above traditional low-wage definitions. Senior Minister of State Mr Zaqy Mohamad highlighted that these improvements reflect the progress made by tripartite partners in significantly enhancing the salaries of security officers. He also specified that gross wage structures were implemented in newer PWM sectors to prevent system manipulation and ensure workers receive a guaranteed minimum income. These amendments ensure an accurate record of the government’s efforts to achieve real wage growth and maintain the integrity of the PWM framework.
Transcript
The following statements were made in the reply provided by the Senior Minister of State for Manpower (Mr Zaqy Mohamad) during Question Time for Question No 2 at the Sitting of 10 March 2025:
(a) The Senior Minister of State for Manpower (Mr Zaqy Mohamad): Let me explain. In 2016, the PWM wage requirements for a security officer employed by a security agency was $1,300. From 1 January 2025, this year, this has increased to $2,870 and by 2028, this would increase to $3,530. So, this translates to PWM raising the salaries of security officers to around 220% more than the wage requirement in 2016. [Please refer to "Ensuring Real Wage Growth for Security Officers following PWM Implementation", Official Report, 10 March 2025, Vol 95, Issue 161, Oral Answers to Questions section.]
(b) Mr Zaqy Mohamad: Technically, if you want to go by strict definitions, they are exceeding past what we used to think as low-wage workers. So, that is good progress from the unions and the tripartite partners in terms of how we have managed to increase the low wages of security officers such that by 2028, they will even get up to $3,500, which is much higher than what many of our low-wage workers earn today. So, to a large extent, that shows progress. [Please refer to "Ensuring Real Wage Growth for Security Officers following PWM Implementation", Official Report, 10 March 2025, Vol 95, Issue 161, Oral Answers to Questions section.]
(c) Mr Zaqy Mohamad: Nonetheless, having said that, one of the key reasons why we moved towards a gross wage structure for PWM is to make sure that they do not game the system, such that everything is all-in or all-encompassing, and as long as you meet the PWM requirements for gross wage, I think that is sufficient to ensure that there is a minimum amount that security officers can benefit from PWM. [Please refer to "Ensuring Real Wage Growth for Security Officers following PWM Implementation", Official Report, 10 March 2025, Vol 95, Issue 161, Oral Answers to Questions section.]
Written statement by Mr Zaqy Mohamad circulated with leave of the Speaker in accordance with Standing Order No 29(5):
I wish to make the following factual corrections to my statements made at the Sitting of 10 March 2025. My statements should read as follows:
(a) The Senior Minister of State for Manpower (Mr Zaqy Mohamad): Let me explain. In 2016, the PWM wage requirements for a security officer employed by a security agency was $1,100. From 1 January 2025, this year, this has increased to $2,870 and by 2028, this would increase to $3,530. So, this translates to PWM raising the salaries of security officers to around 220% more than the wage requirement in 2016.
(b) Mr Zaqy Mohamad: Technically, if you want to go by strict definitions, they are exceeding past what we used to think as low-wage workers. So, that is good progress from the unions and the tripartite partners in terms of how we have managed to increase the low wages of security officers such that by 2028, they will get at least $3,530, which is much higher than what many of our low-wage workers earn today. So, to a large extent, that shows progress.
(c) Mr Zaqy Mohamad: Nonetheless, having said that, one of the key reasons why we moved towards a gross wage structure for the newer PWM sectors is to make sure that they do not game the system, such that everything is all-in or all-encompassing, and as long as you meet the PWM requirements for gross wage, I think that is sufficient to ensure that there is a minimum amount that workers can benefit from PWM.