Understanding how PWM works in Singapore’s Retail Industry

Wage is an important discussion that determines which necessities, resources, and items a worker can obtain for sustenance. Many economies operate in a minimum wage model that sets a baseline salary for the workforce. Singapore, however, devised a compensation scheme called the progressive wage model or PWM, in hopes of promoting a fair salary, especially for low-income earners.

What is PWM? 

The progressive wage model in Singapore provides workers sustainable salary increases that come with more experience and training. It was lobbied by the Labour Movement and took effect in June 2012. The PWM is developed by unions, employers, and the government that form tripartite committees for each industry. The goal of the scheme is to raise wages at a justified pace and map out a clear and productive career pathway for workers. It encourages skills development, increased productivity, and career advancement for a competitive economy.

 PWM in retail

In retail management, the progressive wage model was developed by the Tripartite Cluster for Retail Industry. Employers in the retail industry must abide by the PWM requirements to operate starting 1 September 2022, when the industry adapted the salary scheme.

The progressive wage model for retail benefits cashiers, retail assistants, supervisors, and managers. The minimum basic salary readjusted for September 2024 is $1,975–2,395. Salary increases as more retail skills are attained through training and finishing modules that follow the SkillsFuture standards.

The PWM in the retail industry of Singapore refers to a five-level career progression model. Starting from cashier/retail assistant, the wage progressively increases as the employee is promoted to the role of senior cashier/senior retail assistant, assistant retail supervisor, retail supervisor, then retail manager. The rate of increase guarantees that workers in retail management are compensated according to their skills and productivity.

The Role of Skills Development in the Progressive Wage Model 

The progressive wage model in Singapore rewards skills enhancement for better opportunities and career advancement. Training requirements according to the Skills Framework for Retail are put in place so workers are well-equipped to fulfil their tasks in the retail industry. Here are the roles of skills development in retail:

1. Increased Wage – As repeatedly emphasised, the PWM rewards more skill with higher compensation. Specific training requirements are required for each job title tier so accumulating retail skills is highly advantageous in this salary scheme.
2. Quality work – Training enhances your abilities and helps you bring out your potential. The knowledge and skills that you gain from continuous learning and training eventually translate to quality output.
3. Increased productivity – The goal of improving your skills following a carefully designed training framework is to prepare you to climb up the industry and keep up with the increasing demands.
4. Increased employability – With the skills accumulated through training, employers will be more pleased to have you in their team. They will gain more trust in your work ethic and contributions.
5. Work satisfaction – The progressive wage model gives workers satisfaction about their line of work. They gain a sense of fulfilment as they continue to learn and ascend the career and wage ladder.

 Other Industries Where PWM Applies 

Not all industries have adapted the progressive wage model. But so far, there are a handful of sectors that utilise the scheme to ensure fair compensation and equal playing field.

Aside from the retail industry in Singapore, sectors where PWM applies are the cleaning sector, security sector, landscape sector, lift and escalator sector, food services sector, administrators and drivers, and waste management sector.

 PWM and Singapore’s Retail Industry 

The progressive wage model covers all levels of workers in Singapore, from rank-and-file employees to professionals, managers and executives. It is comprehensive in the effort to enhance the skills of the island nation’s workforce, improve working conditions, and build a competitive economy.