A cashier at a retail store in Singapore can safely earn a salary of $2,175 per month. And, instead of worrying about his/her wages shrinking, the sector’s Progressive Wage Model (PWM) has been enhanced to offer $2,305 from 1 September 2025 and annual subsequent increments until 1 September 2027.
This is the wage baseline support provided to lower-wage retail workers following the rollout of the extension of the Progressive Wage Model (PWM) to the retail sector starting 1 September 2022.
The retail sector has often been stigmatised as a sector that has long working hours, lower pay, and a perceived lack of career progression. It is a sector that hires a lot of lower-wage workers too. The PWM attempts to attract workers to the sector and provide meaningful long-term jobs to Singaporeans.
In Singapore, there are over 29,000 retail enterprises in diverse sub-sectors such as department stores, consumer electronics, and supermarkets. The retailers provide jobs to about 87,000 resident employees, of which a large group are lower-wage workers. The sector also employs a sizeable number of part-timers.
Read Also: How Much More Should You Pay Your Employees In 2023 As Recommended By National Wages Council?
What Is The Retail PWM
While the Progressive Wage Model (PWM) has been around since 2014, it was only extended to the retail sector in 2022.
Developed by the Tripartite Cluster for Retail Industry (a group that consists of unions, employers, and the government), the PWM not only dictates salary, but is a key initiative to build a future-ready workforce and to transform retailers into employers of choice.
The PWM maps out a career pathway for the workers that includes training and productivity improvements. For lower-wage workers to meet the PWM criteria, workers will have to upgrade their skills and improve productivity.
The retail PWM started in September 2022 with an adjustment period of 6 months given by the Ministry of Manpower (MOM) to give employers time to adjust and comply with the progressive wage requirements.
Now, it has been enhanced to provide career pathways alongisde salary increments up to 1 September 2027. This will increase the baseline salary for retail assistants and cashiers to $2,565 from 1 September 2027.
+ Hourly Gross Wage is applicable to part-time workers who work less than 35 hours a week
^PWM wage from 1 Sep 2027 is subject to review in 2026. TCR may consider adjusting the PWM gross wage requirements upwards if the economic situation improves.
Who Are Included In The Retail PWM
Singapore Citizens (SC) and Permanent Residents (PR) who are full-time or part-time employees in retail job roles or on a contract-of-service fall into the retail PWM purview. The retail PWM also includes SC and PRs who are employed by firms that hire foreign workers.
The following retail job roles are included in the PWM:
- Cashier
The role:
Assist customers in stores at checkout
Attend to customers’ queries at the cashier counter
At checkout, implement promotional events on items
- Retail Assistant
The role:
Sell and explain product functions and qualities
Assist customers by demonstrating the features of products
Maintain and manage store display standards
Replenishment and stock-taking
- Senior Cashier
The role:
Mentor and guide other cashiers
Plan the operations in checkout department
Train new cashiers
Able to perform the roles of a cashier
- Senior Retail Assistant
The role:
Mentor and guide retail assistants
Conduct training for new retail assistants
Handle customer enquiries
Perform the responsibilities of a retail assistant
- Assistant Retail Supervisor
The role:
Assist retail supervisor to oversee daily operations
Achieve store sales target and prepare monthly roster of sales team
Supervise and coach retail assistants, cashiers, and third-party staff
- Retail Supervisor
The role:
Ensure smooth operations
Deep knowledge of products and experienced with customer service protocols
Conduct training for roles in the store
Able to perform the role of an assistant retail supervisor
- Retail Manager
The role:
Oversees end-to-end operations
Ensures the outlet follows standard operating procedures
Resolve customer’s issues and service recovery
Drive, analyse, improve and achieve sales and service performance
What Are The Wage Requirements For Retail PWM Roles
The workers are paid wages that are aligned with their skills and productivity. The salary band differs according to how skilled and experienced the worker is.
This PWM structure makes it easier for retailers to adopt as there is a staggered salary level per worker type. For a worker to promote to the next job level, he/she will have to go for specific training courses.
When the PWM for the retail sector was first implemented in 2022, a full-time Cashier would have earned a monthly gross wage (excluding overtime payments) equal or more than $1,850. A Senior Cashier’s salary should be equal or more than $2,035. As the wages of Retail Supervisors and Retail Managers are generally above the 20th percentile, the salaries were recommended to be left to market forces.
The monthly gross wage is calculated by the sum of basic wage, allowances (travel, food, housing), and productivity incentive payments. It does not include bonuses (annual wage supplement), stock options, reimbursement of special expenses, payment-in-kind, and employer CPF contributions.
Full-time retail workers
As mentioned above, the next phase for salary and career progression for retail workers has been announced – raising baseline salaries in 1 September 2025, 2026 and 2027.
Part-time employees under a contract of service, who work less than 35 hours a week, are to be paid based on pro-rated PWM gross wages. The formula to compute the PWM hourly gross wage for part-timers is as follows:
Part-time retail workers
Read Also: Progressive Wage Model: How Much Will Singapore Employers Have To Pay Their Workers
Do You Have To Pay For Overtime Work?
Full-time workers who work more than 44 hours a week are covered by the Employment Act Part IV.
The Employment Act Part IV only applies to:
- A workman (doing manual labour) earning a basic monthly salary of not more than $4,500.
- An employee who is not a workman, but is covered by the Employment Act and earns a basic monthly salary of not more than $2,600.
- Not all managers or executives are covered by Part IV of the Employment Act
Employers will need to follow the PWM gross wage requirements for workers who work overtime (OT). The rate for overtime must be paid at least 1.5 times of the basic rate of pay.
Here is an example of how much you need to pay your workers for OT
Specific To Retail Sector: Calculation Of Gross Wages Allowed To Average Over 3-Month Period Due To Seasonal Factors
The fluctuation in sales for the sector varies and is often dependent on the seasons. For example, the Christmas and New Year period will see a jump in orders as more do festive shopping. Similarly, during the June period when the Great Singapore Sale kicks in, more people may do their shopping to get bargains.
Therefore, the calculations of the wage requirements for workers covered by the retail PWM are allowed to average over a 3-month period.
To qualify and meet the seasonal PWM requirements, either of these conditions have to be met:
- The gross wage paid for a month needs to be equal to or higher than that month’s PWM wage requirements (inclusive of OT pay, if any)
- The past 3 months’ average gross wage is equal to or higher than the average wage requirements (of past 3 months; inclusive of OT pay, if any)
PWM Training Requirements
SC and PRs must meet the retail PWM training requirements of getting at least 1 Workforce Skills Qualification (WSQ) Statement of Attainment according to their job role, out of the list of approved WSQ training modules. This list has also been expanded, alongside the announcement for salary increments in subsequent years.
Inhouse WSQ training modules (with prefix “RET” in the accompanying Technical Skills and Competencies code) can be used to meet the training requirements too.
List of WSQ training modules for a Retail Assistant/Cashier
Retail workers that hold relevant qualifications from Institutes of Higher Learning (IHL) or have attained the ITE Skills Subject Certificate (ISSC) in Retail & e-Commerce will also be recognised as having met the minimum PWM training requirements.
Progressive Wage Credit Scheme To Support Employers Paying Higher Salaries
The government will provide a transitionary support in the form of co-funding the higher salaries that employers will have to pay. Termed the Progressive Wage Credit Scheme (PWCS), employers will receive up to 40% of the wage increases given to lower-wage workers in 2025 and up to 20% in 2026.
This should alleviate some of the cost pressure, while enabling businesses to drive transformation efforts to enhance overall productivity – potentially with employee training and implementing digital tools.
Read Also: Progressive Wage Credit Scheme (PWCS): What Businesses Need To Know
What Happens If You Don’t Comply With The PWM Requirements
Employers will be advised on the appropriate rectification actions to take within a reasonable timeframe.
If employers underpay workers the mandated retail PWM wages, they are required to make up for the shortfall.
They also have to make the corresponding Employee’s Central Provident Fund (CPF) deduction and Employer’s CPF contributions in accordance with the CPF Act.
If you fail to comply, enforcement measures may be imposed and you will not be able to renew existing work passes or apply for new work passes (Work Permit, S Pass, Employment Pass).
Read Also: Progressive Wage Model (PWM) For Retail Sector: Is Raising Prices The Only Option For Businesses?
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