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SINGAPORE: Eligible food services workers will receive pay increases for three more years, after the government accepted recommendations on the Progressive Wage Model (PWM) for the industry.
The new wage increases will kick in on Jul 1 every year from 2026 to 2028, and cover more than 53,000 full-time and part-time workers, the Ministry of Manpower said on Monday (Mar 16).
The Food Services Progressive Wage Model underwent a review after it was first implemented in 2023 for Singapore citizens and permanent residents in the industry.
Under the new model, monthly salaries for eligible workers will increase by S$140 (US$109) every year from 2026 to 2028 for most job roles covered by the PWM, including food or drink stall assistants, cooks, waiters and kitchen assistants.
Waiter supervisors' monthly salaries will see a S$145 increase each year.
Entry-level workers will be paid at least S$2,220 as of Jul 1 this year, and that minimum will increase to S$2,500 by Jul 1, 2028.
The monthly wage increases from 2026 to 2028 are lower than the raises mandated under the PWM from 2023 to 2025.
In 2024 and 2025, eligible workers received a monthly salary increase of S$165 per year. That meant the entry-level salary rose from S$1,750 to S$2,080.
Minister of State for Manpower Dinesh Vasu Dash said the government, businesses and unions had robust discussions about the wage increases and decided that the amount was reasonable given the current environment, which is different from 2023.
"But we continue to keep watch of the sector and of economic times in the next couple of months and years," he told reporters during a visit to Swensen's Unlimited at Changi Airport Terminal 2.
Singapore cannot control global geopolitical events, but it will be as responsive as it can to the volatility, he added.
He said the changes are finely calibrated, and the government wants lower-wage workers to benefit from pay increases and also level up their skills through the PWM.
The food services PWM was introduced in March 2023, but the yearly increases from 2026 will take effect from July to align with the PWM for other sectors.
The Tripartite Cluster for Food Services noted that the industry faces challenges, including escalating operating costs and a labour shortage.
"Despite these challenges, the (tripartite cluster) is committed in its efforts to uplift the industry and improve the welfare of food services workers," it said in a report.
A staff member at Swensens' Unlimited in Changi Airport Terminal 2 on Mar 16, 2026. (Photo: CNA/Justin Tan)
Assistant secretary-general of the National Trades Union Congress Yeo Wan Ling said negotiations were "quite hard" for this second iteration of the PWM, but it is significant for workers, given the challenging economic times and the fact that employers are facing cost increments.
"We are very, very grateful for the employers for doing this," she said.
"I do believe this is when the tripartite works together to ensure that everybody looks at sustainable wage growth as well as productivity growth," she added.
At Budget 2026, the government said it would extend the Progressive Wage Credit Scheme for two more years. The scheme supports employers as they adjust to mandatory wage increases under the PWM or voluntarily increase the salaries of lower-wage workers.
The government is also enhancing the co-funding support from 20 per cent to 30 per cent for wage increases given in the qualifying year 2026.
Food establishments that are not allowed to hire foreign workers on mainstream work passes, such as hawker or coffee shop stalls, are exempted from PWM requirements, but are encouraged to adopt them.
Singapore National Employers Federation council member Benjamin Boh said employers have to start thinking about whether their businesses are productive and automated enough to stay profitable as wages increase, but it is still the right thing to pay workers more.
Businesses that see the positives in this and manage it well will be able to retain workers and do better overall, he added.
Other recommendations from the Tripartite Cluster for Food Services industry include refining job roles to reflect evolving needs and the recognition of more qualifications to meet the minimum training requirements.
