MPs call for extension of co-funded wage increases for lower-income workers, CPF tweaks
Besides extending the Progressive Wage Credit Scheme beyond 2026, its wage ceiling should be raised, says MP Wan Rizal
[SINGAPORE] The Progressive Wage Credit Scheme (PWCS), which co-funds wage increases for lower-wage workers, should be extended beyond 2026 and have a higher wage ceiling, suggested MP for Jalan Besar GRC Wan Rizal in Parliament on Tuesday (Sep 23).
The scheme co-funds wage increases under the Progressive Wage Model (PWM) – which lays out wage pathways for certain sectors and roles – as well as voluntary ones, for workers earning up to S$3,000 per month.
Introduced in 2022, it is set to expire in 2026. Dr Rizal noted that in 2022 and 2023, over S$2.7 billion was disbursed, benefiting more than 520,000 employees.
He urged the government to extend this support until workers in the 20th percentile earn at least two-thirds of the median wage – a benchmark set by the Organisation for Economic Co-operation and Development.
He also called for the wage ceiling to be raised beyond S$3,000, so that workers in sectors such as security, waste management, and lift and escalator maintenance remain covered by the PWM even as their wages rise.
The PWM changes were among three suggestions that Dr Rizal had to help lower-wage workers.
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Another suggestion was a comprehensive review of wage support and social assistance schemes, so that “no one is forced to choose between a higher salary and essential aid”.
He noted that some workers hesitate to accept wage increases as they fear no longer being eligible for the Workfare Income Supplement, which tops up the salaries of lower-income workers, or ComCare, which provides financial assistance for basic needs.
His third suggestion was for training in artificial intelligence (AI) to be extended to workers covered by the PWM, such as administrators who can use the technology to optimise workflows.
The National Trades Union Congress’ LearningHub already offers an AI learning ecosystem for skills across different proficiency levels, he noted. “So let us make this accessible to all workers, including our lower-wage workers, so that they, too, can benefit from the AI economy.”
CPF tweaks
Dr Rizal was among several Members of Parliament with suggestions to help vulnerable groups, including persons with disabilities and the elderly.
Bishan-Toa Payoh GRC MP Saktiandi Supaat and Jalan Besar GRC MP Denise Phua suggested tweaks to the Central Provident Fund (CPF) system to improve retirement adequacy.
Saktiandi suggested laying out a 10- to 15-year plan for increases to the Basic Retirement Sum, making hikes more predictable so families can plan with confidence.
He also proposed expanding the Matched Retirement Savings Scheme – which currently has narrow eligibility criteria – to include part-time workers, caregivers returning to work, and “selected groups” of workers in their 30s and 40s.
His other ideas included an inflation-linked CPF Life payout option so that disbursements rise in line with the cost of living; and a review of the 4 per cent interest floor on Retirement Accounts, to raise it or introduce tiers.
Meanwhile, Phua suggested a comprehensive review of the Silver Support Scheme, taking into consideration factors such as inflation and longer life expectancies, to guarantee the payouts remain sufficient.
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