Leave entitlement raised to 10 days for outsourced Progressive Wage Model workers from 2029: MOM

The minimum annual leave entitlement for outsourced workers covered by the Progressive Wage Model (PWM) will be increased from seven to 10 days.

In a Ministry of Manpower (MOM) press release on Jul. 19, MOM said that this will be implemented in phases from 2029 onwards.

This will benefit approximately 60 per cent of outsourced workers across five PWM sectors: cleaning, security, landscape, lift and escalator and waste management.

Outsourced workers are those employed and deployed by their employer, typically a service provider, to work at the premises of a client company, the service-buyer, under an outsourcing contract.

Employment Act

Under the Employment Act, employees are entitled to a minimum of seven days of annual leave in their first year of service.

This increases by one day per year of service with the employer, up to a maximum entitlement of 14 days.

However, due to the nature of outsourced PWM workers' employment arrangements, leave entitlement may reset to seven days if they are rehired.

This usually occurs when a new service provider is appointed to take over a service contract.

In cases like these, outsourced PWM workers continue to work in the same role or location but may lose their accumulated leave benefits despite working in the same role continuously for many years.

Protecting employment conditions

MOM, in consultation with tripartite partners, agreed to this increase to ensure outsourced PWM workers receive leave entitlements that better reflect their continuous years of service and that employment conditions remain protected even when their employers change.

MOM added that the new minimum should not affect the annual leave increase outsourced employees are currently entitled to under the Employment Act.

In accordance with their employment terms and the Employment Act, workers who already receive leave benefits above this new minimum should continue to receive them, said MOM.

Strengthen retention and service continuity

MOM said the increase in baseline leave entitlement will strengthen retention and service continuity to build a resilient core resident workforce.

This supports the professionalisation of outsourced PWM sectors, many of which provide essential services.

The increase will be implemented progressively from 2029 onwards to give businesses sufficient time to adjust, and the respective sectoral Tripartite Clusters will further discuss the specific implementation timeline.

MOM noted this will allow employers and service-buyers to plan ahead and incorporate the change into their contracts, and better manage the operational and cost impact.

Implementation details will be shared closer to the implementation date.

“Appreciating Our PWM Workers” campaign

In a separate media release on Jul. 19, the National Trades Union Congress (NTUC) launched the “Appreciating Our PWM Workers” campaign at Heartbeat@ Bedok.

The public movement is to encourage Singaporeans to better recognise and appreciate PWM workers who often perform critical roles behind the scenes.

The event featured a PWM showcase, and visitors could learn more about the essential services provided by industry partners.

The NTUC-led initiative spotlights workers across the eight PWM sectors, including cleaning, security, landscape maintenance, food services, retail, waste management, lift and escalator maintenance and pest management.

Director of the NTUC Care Division and NTUC Assistant Secretary-General, Melvin Yong, said, "PWM workers play an indispensable role in our daily lives, yet many of their contributions often go unnoticed."

Yong said the PWM has helped raise wages and strengthen career progression for lower-wage workers, but building a more inclusive society also "requires us to value and respect the people behind these essential jobs".