Minimum Wage in Singapore

Current State of Minimum Wage

As of 2024, Singapore does not enforce a standard minimum wage across all sectors. Instead, the wage structure is influenced by market demands, company policies, and individual negotiations. This flexibility allows businesses to adjust wages based on performance and market conditions, fostering a competitive and merit-based environment.

Progressive Wage Model (PWM)

The Progressive Wage Model (PWM) is Singapore’s strategic initiative aimed at uplifting lower-wage workers by setting minimum wage benchmarks in specific sectors. The PWM covers sectors like cleaning, security, and landscape, with plans to expand to more industries. Under the PWM, workers are assured a minimum salary that increases progressively with skill levels and job responsibilities.

Sectors Covered by PWM

• Cleaning sector
  • Extension to in-house cleaners
• Security sector
  • Extension to in-house security officers
• Landscape sector
  • Extension to in-house landscape maintenance employees
• Lift and escalator sector
• Retail sector
• Food services sector
• Occupational PWs for administrators and drivers
• Waste management sector

These sectors have structured career progression pathways, ensuring that as workers gain more skills and responsibilities, their wages increase correspondingly.

Overtime Pay and Salary Limits

• Overtime Pay
  • For overtime work, employees must be paid within 14 calendar days after the end of the salary period.
  • Overtime work is classified by all work in excess of the normal hours of work (excluding breaks). You can claim overtime if you are:
    • A non-workman earning up to S$2,600.
    • A workman earning up to S$4,500.
  • Overtime pay = Hourly basic rate of pay x 1.5 x number of hours worked overtime
  • As an employee, you are not allowed to work more than 12 hours a day.
  • If an employer requires employees to work more than 12 hours a day must apply for an overtime exemption.
  • An employee can only work up to 72 overtime hours in a month.
  • Work on rest day or public holidays is not counted in the 72-hour overtime limit.
  • Payment must be made within 14 calendar days after the last day of the salary period.

Central Provident Fund (CPF) 

The Central Provident Fund (CPF) is a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement, home ownership, healthcare, family protection and asset enhancement according to the below accounts:

• Contribution Rates
  • Ordinary Account (OA): For housing, insurance, investment, and education.
  • Special Account (SA): For old age and investment in retirement-related financial products.
  • Medisave Account (MA): For hospitalisation and approved medical insurance.
  • Retirement Account (RA): On your 55th birthday, a fourth account, the Retirement Account (RA), is automatically created.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Singapore employment laws and regulations, please visit the official governmental websites.

Updated on: 8^th August 2024