Retail Workers to Get Wage Increases Under New Progressive Wage Model

53,000 Retail Workers to Benefit from New Wage Model Starting September 1

Singapore’s government has accepted the Tripartite Cluster for Retail (TCR)’s recommendations for the Progressive Wage Model (PWM) in the retail sector, paving the way for a new three-year schedule of wage increases for over 53,000 resident full-time and part-time workers from 1 September 2025 to 31 August 2028.

Beyond pay adjustments, the updated PWM will also offer an expanded list of recognised training modules and qualifications from Institutes of Higher Learning (IHLs) to meet minimum training requirements, creating more pathways for workers to upskill and advance their careers.

The TCR described the upcoming annual wage increments — between S$130 and S$160 — as “more modest and sustainable” than the current plan, which saw higher annual percentage increases.

Wage increases across roles in retail sector

  • Entry-level workers (e.g. cashiers, retail assistants): Monthly gross wages will rise from S$2,175 to S$2,305 in September 2025, with annual increments bringing the baseline to S$2,565 by September 2027.

  • Part-timers: Hourly pay will increase from S$11.41 to S$12.09 in September 2025, and to S$13.45 by September 2027, ensuring parity with the PWM structure for full-timers.

  • Senior cashiers and retail assistants: Monthly pay will go from S$2,395 to S$2,535 in September 2025, S$2,680 in 2026, and S$2,820 in 2027.

  • Assistant retail supervisors: Increases of S$155 in September 2025, S$160 in 2026, and S$150 in 2027 will bring monthly wages up steadily.

Wages for the third year, starting 1 September 2027, will be reviewed in 2026 and may be raised if the economic outlook improves.

Support for employers and workers

To ease cost pressures, eligible employers will automatically receive co-funding through the Progressive Wage Credit Scheme (PWCS) until 2026, covering up to 40% of wage increases for lower-wage workers in 2025, and 20% in 2026.

Minister of State for Manpower Dinesh Vasu Dash said this funding should act as a buffer so businesses do not have to pass the full wage increase on to customers.

The TCR acknowledged that the retail sector faces a “challenging” environment, with brick-and-mortar stores seeing shrinking footfall due to e-commerce competition, overseas retail options, and the upcoming Johor Bahru–Singapore Rapid Transit System (RTS) Link in 2026.

TCR chair and National Trades Union Congress (NTUC) assistant secretary-general Yeo Wan Ling said the changes aim to “reshape perceptions of retail jobs” and position the sector as a dynamic field with meaningful, long-term careers.

She noted the PWM has already expanded coverage to 7,000 more workers since its 2022 launch, and that roles in the industry are evolving, with some traditional positions disappearing while new opportunities emerge.

Expanded training pathways for retail workers

The updated PWM will recognise qualifications from Ngee Ann Polytechnic, Republic Polytechnic, Nanyang Polytechnic, and the Institute of Technical Education’s retail & e-commerce skills subject certificate as meeting training requirements. This is intended to acknowledge prior learning and give workers more accessible options to meet skills benchmarks.

The TCR said these changes “strengthen employability and open doors to higher-paying roles” in an industry that is becoming more digital and customer-focused.

Labour Movement’s support

In a Facebook post, Labour Chief Ng Chee Meng highlighted the dedication, empathy, and adaptability needed in retail, especially as workers handle more responsibilities, learn new digital tools, and adapt to shifting customer expectations.

He welcomed the TCR’s recommendations for annual wage increases, expanded training, and clearer career pathways, and pledged that NTUC will continue working with tripartite partners to ensure retail workers — and workers in every sector — have better skills, fairer opportunities, and stronger support.

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