Wage increases for cleaners from 2023 will give employers time to adapt: Zaqy Mohamad

FOLLOWING the announcement of a progressive wage increase for cleaners on Monday, Senior Minister of State for Manpower Zaqy Mohamad said that implementing the new measures from 2023 will give employers time to adapt to the significant wage increases. The six-year schedule also provides service buyers with clarity on cost increases to help them plan for the long term, said Mr Zaqy in a response to questions about why the new recommendations for better wages for cleaners will only begin in 2023.

Speaking at a media briefing on Thursday, Minister for Manpower Tan See Leng also shared about the time and effort needed for implementing the Progressive Wage Model (PWM), which takes into consideration views from various stakeholders.

"Our main concern is that over the long haul it may cause a lot of disengagement and disemployment," said Dr Tan, referring to disemployment as a situation where employees are laid off when companies are forced to pay higher wages.

Adding to Dr Tan's point was secretary-general of the National Trades Union Congress Ng Chee Meng, who said defining a minimum wage goes beyond "imposing a policy dictate".

Setting too high a minimum wage may make workers redundant, but wages that are too low may also turn into a wage ceiling for workers, said Mr Ng.

Under the new wage adjustments, workers in the cleaning sector would enjoy increments of between 5 and 20 per cent, with more significant increases in the first year of implementation before moving on to smaller increments subsequently.

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The first adjustment in 2023 will see base wages of general cleaners, for example, increase 19.7 per cent to S$1,570 from S$1,312.

Since 2020, cleaners have enjoyed, and continue to enjoy, a wage growth of 3 per cent per annum as part of PWM wage increases previously announced in 2016. The new recommendations by the Tripartite Cluster for Cleaners' serves to accelerate the wage growth.

Dr Tan said the sustained wage increases for cleaners are a result of both a "close tripartite collaboration over the last decade" as well as consistency and perseverance in efforts to uplift the wages of all low-wage workers.

Commenting on future plans to expand the PWM, Dr Tan said the tripartite partners have also reached a consensus to ensure that the wages of low-wage workers would continue to outpace median wage growth.

Setting the Tripartite Cluster for Cleaners' recommendations as the framework, Dr Tan said he is optimistic that there would be a pipeline of similar frameworks for more sectors in the coming months.