Progressive Wage Model Sectors Where Basic Wage Schedules Have Exceeded $2,600 Threshold
Ministry of ManpowerSpeakers
Summary
This question concerns Progressive Wage Model (PWM) sectors with basic wage schedules exceeding the Employment Act Part 4 threshold of $2,600, the number of affected employees, and whether the threshold is reviewed, as raised by Mr Kenneth Tiong Boon Kiat to the Acting Minister for Manpower. In response, Ms Jasmin Lau stated that the outsourced security sector is currently the only PWM sector where all job rungs exceed Part 4 coverage, a deliberate move implemented in January 2024 to enable sustainable wage growth without relying on overtime. For other PWM sectors, coverage depends on individual salaries and job responsibilities, so the Ministry of Manpower does not track the exact number of workers moving out of Part 4. She clarified that Part 4 and PWM serve complementary roles by capping working hours and guaranteeing minimum wage floors, respectively. Lastly, both PWM wage schedules and Part 4 thresholds undergo regular reviews, with the Tripartite Workgroup on the Employment Act Review currently reviewing Part 4 protections.
Transcript
79 Mr Kenneth Tiong Boon Kiat asked the Acting Minister for Manpower (a) which Progressive Wage Model sectors have basic wage schedules that now exceed the threshold of $2,600 in Part 4 of the Employment Act; (b) how many employees have moved outside the coverage of Part 4 as a result; and (c) whether the threshold is reviewed when a wage schedule is set.
Ms Jasmin Lau: Part 4 of the Employment Act provides additional protections to non-workmen who earn a basic monthly salary of $2,600 or below, and to workmen who earn a basic monthly salary of $4,500 or below. These protections include overtime pay and limits on daily working hours.
Currently, the only Progressive Wage Model (PWM) sector where all job rungs are out of Part 4 coverage is the outsourced security sector. Since January 2024, outsourced PWM security officers covered under the PWM are no longer within the scope of Part 4. This was a deliberate decision by the Security Tripartite Cluster to set wages above the threshold, so that outsourced security officers can enjoy sustainable wage growth without needing to work overtime to earn more. The PWM wage schedules for all sectors can be found on the Ministry of Manpower's (MOM's) website.
For all other PWM sectors, whether a worker falls under Part 4 depends on both their actual job responsibilities and whether their salary is below the relevant threshold. Because of this, MOM does not have data on the precise number of workers who have moved out of Part 4 coverage as a result of PWM wage increases.
Part 4 and PWM serve complementary but distinct purposes. Part 4 protects lower-income workers who may have less bargaining power, by ensuring they have overtime pay and caps on working hours per day. The PWM, on the other hand, sets a minimum floor for wages in specific sectors, ensuring workers receive a guaranteed level of pay regardless of overtime hours. Where PWM workers' wages remain below the Part 4 thresholds, they continue to benefit from both sets of protection.
Both the Part 4 thresholds and PWM wage schedules are reviewed regularly by MOM and tripartite partners. The Tripartite Workgroup on the Employment Act Review is currently reviewing Part 4 to ensure that these protections remain relevant and continue to support workers who need them the most. We will announce the outcome in due course.