The unfinished journey: Why Singapore’s Progressive Wage Model needs a bold next chapter

Ten years ago, Azizah Abdul Majeed was working night shifts as a cleaner at Changi Airport, earning just $600 a month while raising two young sons alone.

Today, as a site supervisor earning $1,950 monthly, her story embodies both the promise and the unfinished potential of Singapore’s Progressive Wage Model (PWM).

Speaking in Parliament on 22 September 2025, NTUC Assistant Secretary-General Melvin Yong highlighted workers like Azizah as proof that Singapore’s approach to lifting lower wages is working.

But he also issued a clarion call: the journey is far from complete, and bolder ambitions are needed.

“Income at the 20^th percentile is about 55 per cent of median income – short of the OECD benchmark of two-thirds.

“NTUC believes it is timely to convene a refreshed Tripartite Workgroup on Lower-Wage Workers to chart the next bound of progress,” said Mr Yong.

A decade of transformation

The numbers tell a compelling story. Between 2019 and 2024, real wages for workers at the 20^th percentile grew by 5.9 per cent – outpacing the 3.6 per cent growth for median workers.

The Gini coefficient, a measure of income inequality where 0 represents perfect equality and 1 represents complete inequality, fell from 0.464 in 2014 to 0.435 in 2024 before transfers and taxes. This means Singapore’s income gap has narrowed measurably over the decade.

For cleaners like Azizah, the transformation has been dramatic. Entry-level general office cleaners earn at least $1,910 as of 1 July 2025 – more than triple the $600 they made before PWM.

In security, basic wages jumped from $1,100 in 2016 to $2,870 in 2025, with further increases planned to reach $3,530 by 2028.

“Unlike a single wage floor applied across the board, PWM is tailored to specific sectors, covers over 40 job roles, and enables workers to progress through skills and productivity,” Mr Yong explained, defending Singapore’s choice against calls for a universal minimum wage.

Today, more than 155,000 workers across nine sectors benefit from PWM’s structured approach to wage progression tied to skills upgrading and career advancement.

Beyond the numbers: Real lives, real progress

Behind the statistics are workers whose lives have been transformed.

Azizah, now 54, credits her rise from part-time cleaner to supervisor to both PWM’s mandatory wage increases and her company’s emphasis on training. She completed 12 professional courses and pursued a Diploma in Leadership.

“When I took up the Diploma in Leadership, it really showed me many ways to tackle workers, handle clients, and manage whatever problems arise in the building,” she shared.

At 54, she’s planning to pursue a degree in leadership, a remarkable ambition that speaks to how PWM has created not just higher wages but genuine career pathways.

In the security sector, Sivamani Taigrajan’s journey mirrors this transformation.

One of the few women in security when she started in 2005, she now runs a command centre at AETOS Guard Services, overseeing sophisticated digital systems that have revolutionised the industry.

“The security industry is not a lazy man’s job. It’s a more advanced technology job,” Sivamani said.

Her father once worked long hours as a security guard; today, she leads with technology and earns more than $3,000 monthly as a supervisor.

The challenges that remain

Mr Yong acknowledged that there are persistent challenges.

Inflation continues to weigh heavily on lower-income households, with NTUC’s June 2025 survey showing they’re most worried about rising costs of food, groceries, and healthcare.

Many are “sandwiched-generation” workers who support both their children and elderly parents.

Career progression remains unclear for many workers, with 45 per cent of lower-wage respondents citing a lack of knowledge about training opportunities as their biggest barrier to advancement.

Long working hours persist – security officers still work 12-hour shifts, six days a week.

“Higher wages cannot come at the expense of health, well-being and family life,” Mr Yong said.

Perhaps most concerning is the challenge to the talent pipeline. Younger Singaporeans aren’t joining PWM sectors in sufficient numbers, raising questions about long-term sustainability and the balance between local and foreign manpower.

A bold vision forward

Beyond calling for a refreshed tripartite workgroup, Mr Yong outlined specific areas for PWM expansion, including pest management, an essential service in public health but still plagued by low wages and high attrition.

He also emphasised productivity as the enabler of sustainable wage growth, citing 800 Super Waste Management’s deployment of AI-enabled recycling bins that boosted productivity and enabled a 5 per cent pay increase for 100 workers.

The OECD benchmark – lifting lower-wage workers to two-thirds of median income – represents a significant leap from the current 55 per cent. Achieving this would require not just wage increases but sustained career progression and improved working conditions.

The tripartite challenge

Central to Mr Yong’s vision is the tripartite approach that has been Singapore’s hallmark.

The 2021 Tripartite Workgroup on Lower-Wage Workers produced 18 recommendations, all of which were implemented by July 2023. However, economic conditions are now more demanding, making PWM wage negotiations even more challenging.

“These challenges make it even more critical that our tripartite partners stand firm in upholding fair and sustainable outcomes for workers,” Mr Yong said.

Beyond PWM, he called for raising the Local Qualifying Salary threshold and strengthening support for training and upskilling.

NTUC will continue to provide direct support through the NTUC-U Care Fund for vulnerable families, while NTUC impact businesses, such as FairPrice, help keep essentials affordable.

The human stakes

For Mr Yong, the policy objectives ultimately come down to human dignity.

“Behind these numbers are real workers and real families: the cleaner supporting his children’s education, the security officer spending more time with his family, or the pest management worker seeking career recognition,” he said.

Azizah’s advice to her grandchildren captures this spirit: “Even though I’m a cleaning supervisor, I managed to do what I want and achieve what I want. I always emphasise to them, don’t look down on cleaners. We must respect everyone.”

As Singapore enters its 15^th Parliament, the PWM’s second decade will test whether the tripartite model can deliver on even bolder ambitions.

For workers like Azizah and Sivamani, it’s not just about higher wages. It’s about recognition, respect, and the promise that no starting point is too humble for meaningful progress.

The foundation has been laid. Now comes the harder work of building upward.

*This article is based on Melvin Yong’s speech during the Motion of Thanks debate in Parliament, delivered on 22 September 2025.

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