Singapore Boosts Pay for Low‑Wage Workers
A Look at the 2025 National Day Plan
Prime Minister Lee Hsien Loong announced a trio of measures to raise the living standards of the bottom 20 % of Singapore’s workforce.What’s on the menu?* a stricter minimum wage requirement for firms hiring foreign talent,* a huge uplift to the Workfare Income Supplement, and* a wider rollout of the Progressive Wage Model (PWM).
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Tightening the Local Qualifying Salary (LQS)
New rule: Any company that employs foreign workers must give every local employee at least $1,400 a month.
Why it matters:
Previously, the LQS applied only to a slice of staff, depending on how many foreigners a firm hired.
Now the wage floor is universal for those local workers, clamping down on covert wage‑cutting tactics.
From the past to the present: The LQS jumped from $1,300 to $1,400 in July 2020 and will be updated as needed.
Bottom line: The change is a “step up” that protects the majority of local hires from being over‑swept by low‑wage labour.
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Workfare Income Supplement Gets a Big Payoff
| Feature |
Detail |
| Annual spend |
$1.1 billion (up from $850 million) |
| Target |
~500,000 low‑wage workers and self‑employed |
| Scope extension |
New age limit: 30 + years (down from 35) |
| Outcomes |
Higher payouts and a broader safety net |
What it does: The scheme adds a cash complement and extra CPF contributions for lower‑wage earners, giving them a financial cushion during tough times.Why it’s welcome: It’s a tangible upgrade from the temporary bailouts offered during COVID‑19.
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Expanding the Progressive Wage Model (PWM)
Coverage expansion:
Retail – starting next year
Food services & waste management – following in phase 2
Occupations crossing sectors – beginning with admin assistants and drivers
Foundation: The PWM sets a wage ladder that rewards skill and experience.
Already includes cleaners, security guards, landscapers, and lift mechanics.
Impact estimate: Roughly 8 out of 10 lower‑wage workers will see a wage bump.
Why it works: By tying pay to skill progression, it lifts wages, improves productivity, and offers a clearer career path.
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Introducing the Progressive Wage Mark
What it’s for: An accreditation badge that signals a company pays all its workers progressive wages.
Business incentive:
Public sector buyers will preferentially order from marked firms.
Consumer benefit: Shoppers can spot companies that truly value their staff.
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Bottom‑Line Takeaway
Workers get the boost they deserve: Pay floor hikes, a massive Workfare upgrade, and broader wage models mean more stable income for those earning at the lower end.
Businesses get a new benchmark: The Progressive Wage Mark provides a recognisable standard for fair pay.
The Government steps up: Continuous adjustments to LQS and PWM, plus a targeted spend on Workfare, underline a commitment to long‑term support rather than one‑off aid.
Whether you’re paying, or earning, the 2025 National Day package is all about giving the hardworking Singaporeans a brighter financial horizon.*
