If you own a business in Singapore’s food and beverage (F&B) sector, exciting changes are coming your way! From March 1st, around 12,000 full-time, lower-wage food service employees will receive a well-deserved pay increase under the Progressive Wage Model (PWM). This initiative presents a great opportunity for businesses to attract and retain top talent, improve service quality, and enhance their brand reputation.
What is the Progressive Wage Model (PWM)?
The Progressive Wage Model (PWM) is a government-backed initiative that ensures better wages, career progression, and skills upgrading for lower-income workers. The goal is to increase productivity while improving financial security for those in the food service industry.
Who Benefits and How Employers Can Leverage This Opportunity
This wage revision applies to essential roles such as waiters, cooks, and kitchen staff, with salaries increasing up to 19% over the next three years (2023-2025). Those currently earning below the PWM entry-level wage will benefit the most. By embracing this change, businesses can strengthen employee loyalty, reduce turnover, and build a more skilled workforce.
What Are the New Minimum Wages?
Quick-Service Food Workers (e.g., food courts, coffee shops, fast-food outlets): Minimum salary increases to $1,750 per month.
Full-Service Food Workers (e.g., restaurants with table service, catering businesses, central kitchens): Minimum salary rises to $1,850 per month.
Annual Salary Growth: Employees will receive an additional $165 per month in March 2024 and March 2025.
What This Means for Employers
Stay Ahead of Industry Standards: Implementing PWM early shows your business is committed to fair wages and employee welfare, setting you apart as an employer of choice.
Higher Wages = More Engaged Staff: Studies indicate that competitive wages improve morale, increase productivity, and enhance customer service, leading to a stronger business.
Competitive Advantage in Hiring: Businesses that offer structured career growth and fair compensation will attract and retain better talent in a competitive job market.
Smooth Transition with Government Support: Employers have until August to fully implement PWM, allowing time for necessary payroll adjustments and operational planning.
The Bigger Picture: A Stronger, More Sustainable F&B Industry
Senior Minister of State for Manpower Zaqy Mohamad highlighted that while slight price adjustments may occur, most Singaporeans are willing to pay more to support fair wages. This shift benefits the entire industry, leading to a highly skilled workforce and improved service standards.
NTUC’s Yeo Wan Ling emphasized that PWM isn’t just about higher salaries, it’s about creating long-term career growth opportunities, and ensuring employees feel valued and invested in their workplace.
Take Action Now for a More Competitive Business
This is an exciting time for Singapore’s F&B employers. The wage increase under PWM presents a valuable opportunity to enhance business sustainability, strengthen employee engagement, and drive customer satisfaction.
Employers who adopt these changes early will be better positioned for long-term success, creating a strong team, improving service quality, and securing a competitive edge in the market.
Employers & Business Owners: Are You Ready? How are you planning to implement the wage changes? Share your thoughts below!
Stay informed on salary trends & benchmarks in Singapore’s F&B industry: Read The First Singapore F&B Salary Benchmarking Survey
