Singapore retailers should factor wage increases into their budgets

A new progressive wage model (PWM) will come into effect for more than 53,000 full-time and part-time retail workers in Singapore, who are set to receive a modest increase in wages each year on September 1 from this year until 2027.

Entry-level retail workers will have their monthly wages increase from S$2175 (approx. US$1690) to S$2305 this year, with their baseline wage rising annually by S$130 to S$2565 by 1 September 2027.

Senior staff and supervisors who are covered under the PWM model will receive slightly higher wage increments of between S$140 and S$160 each year. Assistant retail supervisors will see the greatest absolute gain, as their monthly gross wage will climb from S$2,635 at present to S$3,100 by 2027.

Mayumi Soh, an expert in employment law at Pinsent Masons, said: “Businesses should review their current payroll structure against the new PWM benchmarks for cashiers, assistants and supervisors.”

The PWM for the final wage increase, in 2027, will be reviewed in 2026. The PWM was introduced in 2022 and, as a result, retail wages increased by roughly 8.5% annually over the past three years.

The current increases, however, are more modest, according to the Singaporean government.

Soh said: “Retail employers should take steps to ensure compliance and leverage available support. This includes reviewing and updating employment contracts, offer letters and salary bands to reflect the new PWM thresholds and timelines”.

“2025–2028 budgetary projections should also be reconsidered to account for progressive wage increases and co-funding by Singapore’s Progressive Wage Credit Scheme (PWCS),” she said.