Singapore is continuing its commitment to uplift lower-wage workers through the Progressive Wage Credit Scheme (PWCS) in 2025-26. This initiative ensures Singapore Minimum Wage PWCS 2025-26 standards are improved and helps employers adjust to rising wages. The Ministry of Manpower (MOM) and Ministry of Finance (MOF) have jointly announced new updates to the scheme that will benefit both employees and employers starting in 2025.
As part of Singapore’s broader wage uplift strategy, the Progressive Wage Credit Scheme supports businesses while gradually increasing the minimum wage across various sectors. Here’s what you need to know about the updated rates, eligibility, and the role of employers in the 2025–26 plan.
What is the Progressive Wage Credit Scheme (PWCS)?
The Progressive Wage Credit Scheme was introduced to co-fund wage increases for lower-income Singaporean workers. For 2025-26, the scheme will continue to:
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Encourage employers to uplift wages sustainably
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Ensure low-wage workers benefit from consistent wage growth
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Provide transitional support to businesses adjusting to higher minimum wages
The Singapore Minimum Wage PWCS 2025-26 now includes more job sectors and will offer increased co-funding for wage increments.
Updated Co-Funding Rates & Wage Adjustments
For the upcoming period, here are the revised co-funding rates under PWCS:
| Year | Gross Monthly Wage Increase | Government Co-Funding (%) |
|---|---|---|
| 2025 | Up to $2,500 | 30% |
| 2026 | Up to $2,800 | 20% |
| 2025–2026 | Above $2,500 to $3,000 | 15% (2025), 10% (2026) |
This tiered structure ensures the salary boost is focused on those who need it most, while still supporting employers.
Who Qualifies for PWCS in 2025–26?
The scheme covers full-time and part-time Singaporean employees who:
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Earn a gross monthly wage of up to $3,000
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See a wage increase of at least $100/month
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Are employed in sectors aligned with the Singapore Minimum Wage PWCS 2025-26
Additionally, businesses that:
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Are registered in Singapore
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Make CPF contributions for eligible workers
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Have implemented wage increases based on MOM’s guidelines
…are automatically considered for the co-funding scheme.
Benefits for Employers
Employers receive financial support that reduces the immediate burden of wage increases. Through the Progressive Wage Credit Scheme, they also:
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Retain and attract low-wage workers
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Demonstrate corporate responsibility and social inclusion
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Become more competitive through better worker satisfaction
Additionally, the scheme complements other initiatives like Workfare Income Supplement (WIS) and the Progressive Wage Model (PWM).
Sectoral Expansion and Future Projections
In 2025–26, new sectors will come under the PWCS, including:
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Retail
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Food Services
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Waste Management
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Administrative & Support Services
The government also hinted at a possible review in 2027 to assess the sustainability of the Singapore Minimum Wage PWCS 2025-26. This may lead to increased wage thresholds and revised co-funding rates.
Key Highlights for 2025–26
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Higher income threshold: Now up to $3,000/month
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Wider sector inclusion: Covers more industries than previous years
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Decreasing support rates: Gradual decline in co-funding to encourage employer responsibility
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Digital submissions: Employers can now track funding via IRAS online systems
Conclusion
The Singapore Minimum Wage PWCS 2025-26 continues to be a cornerstone in Singapore’s effort to raise wages fairly and sustainably. With updated wage ceilings, expanded sector coverage, and continued government backing, both employers and workers are set to benefit from this progressive plan. By adapting early and aligning with the Progressive Wage Credit Scheme, businesses can remain competitive while contributing to national wage equity.
FAQs
What is the wage limit for eligibility under the PWCS 2025-26?
The wage limit has been increased to $3,000 for 2025, with different co-funding rates depending on the wage band.
Do all employers qualify for PWCS automatically?
Employers who increase wages in line with the policy and contribute CPF are automatically assessed through the IRAS system.
What happens if an employee’s wage increase is below $100?
The wage increase must be at least $100 per month to qualify for co-funding under the scheme.
How will employers receive the wage credit?
Employers will receive payouts directly from IRAS, typically in the first quarter of the following year after wage increases are recorded.
Is there a deadline for wage adjustments to qualify for the 2025 support?
Yes, wage adjustments must be reflected in 2025 payroll records by December 31, 2025, to be considered for co-funding.
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