The Progressive Wage Model (PWM) has been successful in raising the wages of lower-income workers over the past decade, but more work is needed to ensure that progress remains inclusive, according to NTUC Assistant Secretary-General Melvin Yong. Speaking in Parliament, Yong emphasized that national success should be measured not by economic growth alone, but by how the country supports its vulnerable citizens.
Yong noted that the real wages of workers at the 20th percentile grew by 5.9% between 2019 and 2024, outpacing the 3.6% growth for median workers. He cited the cleaning and security sectors as examples of the PWM’s impact, with entry-level cleaner wages rising from about $600 a decade ago to at least $1,910 today. He highlighted that these changes have provided not just higher pay, but also dignity and purpose for workers. The PWM now covers over 155,000 lower-wage workers across nine sectors and occupations.
However, Yong stressed that challenges remain. Inflation continues to weigh heavily on lower-income households, and workers in some sectors still face long working hours. To address these issues, Yong called for a refreshed tripartite workgroup to chart the next phase of policies for lower-wage workers.
At the Parliament on Monday, 22 Sep, he called for two key proposals to further strengthen the wage system:
- Expand the PWM: Yong proposed expanding the PWM into more sectors, such as pest management. He noted that this essential public health service is currently “plagued by low wages and high attrition,” and a PWM would create a structured wage and career ladder.
- Raise the Local Qualifying Salary (LQS): Yong urged the Government to further increase the LQS, a measure that ensures firms hiring foreign workers also uplift local wages. This move, he said, is essential to close the income gap and secure sustainable wage growth.
Yong concluded by stating that these moves are crucial for upholding the vision of a society where every worker can progress with dignity.
