The Progressive Wage Model (PWM) was implemented in the security industry since 2016. On 12 November 2021, MOM announced that the government has accepted a new six-year schedule outlining wage increases in the security industry via the Progressive Wage Model (PWM).
One of the main reasons to increase salaries and working conditions in the security industry is due to the perennial shortage of manpower and also an increasing incident of abuse faced by security officers. In a survey done by the Union of Security Employees (USE) 4 in 10 security officers faced abuse, with majority of cases involving members of the public.
Singapore has also committed to uplift wages for lower-wage workers with 18 recommendations that were accepted by the government. The current PWM increments also ensures that the wage growth of security officers outpaces the median workers.
Read Also: 5 Ways The Tripartite Workgroup For Lower Wage Workers Intends To Raise Salaries
How Much Will Security Officers Earn?
In 2022, an entry level security officer will earn a minimum of $1,442. With an additional 72 hours of Overtime Pay a month, at 1.5 times basic wages, they should earn a minimum of $2,259.
Going forward, in the new PWM schedule, security officers will see their minimum entry-level wage increase to $3,350 by 2028. This is nearly 50% higher or a 7.4% annual increment compared to the minimum entry-level wage of $2,259 in 2022.
The PWM will also benefit all ranks of the security industry, with Senior Security Supervisors set to see their minimum wages increase to $4,210 in 2028, from $3,203 in 2022. This is over 31% increase or an annual increment of 5.7%.
Read Also: Progressive Wage Model: How Much Will Singapore Employers Have To Pay Their Workers
All Security Officers To Earn More Than $2,600 By 2024
By 2024, even the lowest rung of security officers should earn more than $2,600. This is quite significant as they will no longer be protected by under Part IV of Employment Act – providing basic protection of work hours, rest days and other conditions.
Security agencies are encouraged to work closely with the Union of Security Employees to ensure that fair employment contracts are drafted.
Read Also: Singapore Employment Act: 10 Statutory Requirements To Pay Employees
To avoid a situation where security officers have to simply work longer hours to earn the higher minimum wages, the overtime hours (beyond the standard 44-hour workweek) has been capped at 72 hours per month. This will also improve working conditions by ensuring that security officers are fit to discharge their duties.
As such, the new schedule of minimum wages takes the 72-hour Overtime Pay limit per month into consideration.
Read Also: How To Calculate Overtime Pay For Your Employees During The Month
6-Year Wage Increment Schedule Provides Greater Clarity For Service Providers
There are about 40,000 security officers hired by 265 security agencies today. To ensure that only financially-sound security agencies can enter the industry, certain barriers to entry may be reviewed, such as paid-up capital of a security agency. However, no concrete measure was discussed in the latest set of recommendations.
Given the outsourced nature of the security industry, the 6-year wage increment schedule helps give service providers greater clarity.
This will not leave security agencies in a lurch, after already committing to contracts with service buyers even for a longer period. It will also allow to build it such wage increments into future contracts that it enters into.
Beyond this, the recommendations also urge the government to provide some transitionary wage support to help security agencies mitigate higher costs brought on by PWM requirements.
Read Also: Retirement And Re-Employment Act: 7 Things Employers Need To Know About Retaining Older Workers
Technology Will Be Prioritised In The Security Industry
In the latest set of recommendations accepted by the government, it was stated that the requirement for security should move beyond “pure headcount contracts” to “desire security outcomes”.
This perhaps indicates that the security industry will increasingly rely less on simply manpower, and more on technology and manpower who can leverage on such technology.
The push for transformation in the industry will also hinge on its ability to offer good career prospects and job stability. This will also attract not just more people, but more qualified talent, to join the sector.
As such, the recommendations encourage security agencies to use technology and explore job re-design to improve productivity and outcomes. Security agencies can tap on resources such as the Productivity Solutions Grant (PSG), approach the Union and the security trade associations if you need assistance in driving these efforts.
Read Also: PSG Job Redesign: How Businesses Can Receive Up To 80% Funding For Consultancy Services
Service buyers should also be ready to accept that prices for security contracts will inevitably be higher. Security agencies are advised to be transparent in showing how PWM wage requirements have translated into higher labour costs and, hence, contract pricing.
Subscribe To The DollarsAndSense Business Pass
Enjoy what you are reading and want more? Join The DollarsAndSense Business Pass and unlock access to valuable tools, exclusive networking opportunities, and tap into the wisdom of industry experts to fuel your business expansion!
