Singapore to raise wages for over 53,000 retail workers over three years under PWM

Singapore will raise wages for more than 53,000 retail workers under new Progressive Wage Model (PWM) recommendations from the Tripartite Cluster for Retail (TCR), in a move aimed at improving pay and skills for the sector’s lower-wage employees.

The recommendations, which the Ministry of Manpower (MOM) has accepted in full on 11 August 2025, will take effect from 1 September 2025.

The measures will introduce a three-year “two-plus-one” wage schedule that provides fixed annual pay rises in 2025 and 2026, with a review-based adjustment in 2027.

Manpower Minister of State Dinesh Vasu Dash said: “This three-year timeline is important for the retail sector to also relook at its business processes, figure out ways at which they can be more efficient and productive, and at the same time, uplift workers.”

The PWM recommendations cover a wide range of retail roles, from shop assistants and cashiers to supervisors, and will also apply to part-time employees working fewer than 35 hours per week.

Progressive Wage Model pay increases for retail workers

Under the new PWM structure, retail assistants and cashiers will see their baseline monthly gross wages increase from the current $2,175 to $2,305 in September 2025, with further increases to $2,435 in 2026 and $2,565 in 2027. This represents consistent year-on-year increases of $130.

Senior retail assistants and senior cashiers will benefit from slightly higher increments, with wages rising from $2,395 currently to $2,535 in 2025, $2,680 in 2026, and $2,820 in 2027.

Assistant retail supervisors will have the largest absolute gain, from S$2,635 currently to S$3,100 by 2027.

The wage schedule also sets hourly rates for part-time staff to ensure parity across different work arrangements.

Challenges facing Singapore’s retail sector

The recommendations come as Singapore’s retail industry faces mounting challenges, including falling in-store footfall due to e-commerce competition, higher operating costs, manpower shortages and shifting consumer expectations towards omnichannel shopping.

The opening of the Johor Bahru–Singapore Rapid Transit System (RTS) Link in 2026 is expected to further intensify competition for physical retail outlets.

NTUC Assistant Secretary-General and TCR Chair Yeo Wan Ling emphasised the balanced nature of the new recommendations.

She said: “As the retail sector transforms and faces headwinds, so must our approach to helping our retail workers adapt and make progress in their careers and wages.

“In addition to raising wages for retail workers, the recommendations also help to build the foundation for a stronger and more future-ready retail workforce.”

Enhanced retail training and skills recognition

The TCR is also expanding recognised Workforce Skills Qualification (WSQ) modules and introducing recognition of relevant qualifications from Institutes of Higher Learning (IHL).

Retail workers holding relevant diplomas from polytechnics such as Ngee Ann Polytechnic, Republic Polytechnic, and Nanyang Polytechnic, or certificates from the Institute of Technical Education (ITE), will now have their qualifications recognised as meeting PWM training requirements.

This includes the new recognition of the ITE Skills Subject Certificate (ISSC) in Retail & e-Commerce.

Employer and Government support for PWM wage increases

Singapore National Employers Federation (SNEF) Representative and TCR Co-Chair Ryan Chioh said: “Retail is ultimately a people business. When we take care of our workers by paying them fairly and helping them grow, they take care of our customers.

“Rising costs and manpower constraints are very real challenges in this industry. But with structured wage progression and targeted training, the PWM helps businesses tackle these pressures while building a skilled and motivated workforce.”

The recommendations were developed after extensive engagement with retail employers, NTUC’s affiliated unions, industry associations, and workers.

A survey of 343 retail workers conducted from January to May 2024 provided additional insights into ground-level concerns and aspirations.

To support employers in adjusting to the wage increases, the Government will continue the Progressive Wage Credit Scheme (PWCS) through 2026, covering up to 40 per cent of wage increases in 2025 and 20 per cent in 2026 for eligible lower-wage workers.

Compliance with the PWM will remain a condition for employers to obtain work passes for foreign staff.

The PWM for retail has been in place since 1 September 2022, initially covering about 46,000 workers.

Retail workers welcome wage increases

At Far East Flora, where the TCR representatives visited to observe PWM implementation in action, retail workers expressed optimism about the sustained wage increases and career development opportunities.

Sharifah Natasha Mohd Onran, 23, a checkout assistant who has been with the company since 2021, welcomed the upcoming wage increases.

“It feels good because our efforts and our work are being recognised. And at the same time, it encourages us to work harder for the future. It also helps us with our needs,” she said.

The wage increases have made a tangible difference to her financial stability.

“Compared to last time, I’m even more stable now, and I’m able to help my family with their needs as well, like the groceries. And also, add to my savings,” she said.

Joey Ong Teck Kim, 51, who joined as a retail supervisor in early 2024, highlighted how the company supports worker development through training opportunities.

“The company actually has plans for me to attend courses to improve my job,” he said.

While he’s currently doing on-the-job training, Joey mentioned that the company intends to send him to supervisory training courses soon.

For Joey, the training opportunities provide both professional growth and personal confidence.

“I feel very satisfied to improve my job knowledge here. This will also give me personal security, knowing that I have full knowledge. Then it will be easier for me to do my job here.

“I believe the training and development opportunities at this company will help me progress in my career,” said Joey.

The full details of the TCR’s recommendations can be found here.

Are you a retail worker? Become an NTUC member and make change happen.