Singapore remains committed to narrowing income gaps and improving livelihoods for its lower-wage workers. As part of this long-term strategy, the Progressive Wage Credit Scheme (PWCS) will continue into 2025 and 2026 with updated co-funding rates, expanded sector coverage, and improved employer support mechanisms. The scheme is a collaborative initiative by the Ministry of Manpower (MOM) and the Ministry of Finance (MOF) to encourage sustainable wage growth without overwhelming businesses.
If you’re an employer, employee, or policymaker, here’s what you need to know about the Singapore Minimum Wage PWCS 2025–26 and how it affects you.
What is the Progressive Wage Credit Scheme?
The Progressive Wage Credit Scheme (PWCS), first launched in 2022, is designed to help businesses transition into paying better wages to low-income Singaporean workers. It provides government co-funding for eligible wage increases, ensuring that low-wage earners benefit from real income growth while minimizing cost pressures on employers.
For the 2025–26 cycle, PWCS will
- Support gross monthly wage increases of at least $100
- Focus on employees earning up to $3,000 per month
- Continue offering co-funding, though at a gradually decreasing rate
Updated PWCS Co-Funding Rates for 2025–26
The latest adjustments reflect a balanced approach between supporting workers and promoting long-term wage responsibility among employers. Here’s a quick overview.
| Year | Monthly Wage Range | Government Co-Funding |
|---|---|---|
| 2025 | Up to $2,500 | 30% |
| 2026 | Up to $2,800 | 20% |
| 2025 | $2,501 to $3,000 | 15% |
| 2026 | $2,801 to $3,000 | 10% |
This tiered structure ensures the most help goes to those earning the least, while still offering transitional support to others.
Who Is Eligible for PWCS?
Employees
To qualify for PWCS funding in 2025–26, an employee must.
- Be a Singapore Citizen
- Earn a gross monthly wage of $3,000 or less
- Receive a minimum wage increase of $100 compared to the previous year
- Be employed by a company registered in Singapore
Both full-time and part-time workers are eligible.
Employers
Employers must
- Be legally registered and operate in Singapore
- Make CPF contributions for their workers
- Grant eligible wage increases according to MOM guidelines
No application is needed; IRAS automatically assesses and disburses payments to qualifying companies.
New Sectors Covered Under PWCS 2025–26
To expand the impact of wage reforms, more industries are included in the scheme this cycle.
- Retail
- Food Services
- Waste Management
- Administrative and Support Services
This broader scope means thousands more workers will benefit from better pay, while companies receive necessary support to adapt.
Key Benefits for Employers
Even with co-funding rates tapering, there are compelling reasons for businesses to participate.
- Financial Relief: Substantial offsets for salary hikes
- Talent Attraction & Retention: Happier, more loyal workers
- Reputation Boost: Demonstrate fair wage practices and social responsibility
- Digital Convenience: All disbursements and tracking are managed via IRAS’ digital platforms
The PWCS also complements other wage initiatives like the Progressive Wage Model (PWM) and the Workfare Income Supplement (WIS), creating a holistic support framework for businesses.
Future Outlook: What to Expect Beyond 2026
The Singapore Government has indicated that another scheme review is due in 2027, with possible further adjustments to:
- Income thresholds
- Co-funding structures
- Coverage across more industries
The goal remains the same: a fair, competitive, and sustainable wage system that uplifts every segment of society.
Summary: Why the PWCS Matters More Than Ever
With inflationary pressures and a rising cost of living, the Singapore Minimum Wage PWCS 2025–26 comes at a crucial time. It’s a win-win model providing dignity and progress for workers while easing the burden on employers striving to do right.
Employers should act early, assess their workforce, and align with the new PWCS guidelines to stay ahead. In doing so, they contribute to a more equitable and productive Singapore.
