The Growing Scope and Impact of the Progressive Wage Model

Abstract

This paper outlines the origins and evolution of Singapore’s Progressive Wage Model (PWM), an initiative to raise the incomes of lower-wage workers through stipulated wage floors and ladders corresponding to skills and productivity. The PWM has evolved from a niche scheme targeting outsourced service sectors, viz. cleaning, security, and landscaping, to a national programme covering the majority of lower-wage workers. It has helped to narrow the wage gap without reducing employment. However, the wage ladders will require continual updating, and businesses and consumers will have to adjust to higher costs as Singapore strives to become a more inclusive society.