PUBLISHED ONAugust 11, 2025 9:25 AMBYKhoo Yi-HangOver 53,000 retail workers can expect an increase in wages effective Sept 1, the Tripartite Cluster for Retail (TCR) announced on Monday (Aug 11).
The new set of progressive wage model (PWM) recommendations for the retail sector includes an increase of at least $130.
The PWM was first introduced in 2022.
From Sept 1, retail workers will earn at least the entry-level PWM wage of $2,305, up from the existing wage of $2,175.
From 2025 to 2027, the baseline monthly gross wages will increase from $2,305 to $2,565.
Retail workers can expect a year-on-year increase of up to $160 in the next three years.
Under the PWM, employers must pay at least the PWM wage to eligible workers for their job level and meet the PWM training requirements for eligible workers, according to the Ministry of Manpower.
The PWM recommendations involve a "two plus one year" schedule of wage increases approach, which translates to fixed annual wage increments between Sept 1, 2025 and Aug 31, 2028.
Both full-time and part-time retail staff will receive these increments, amounting to $130 to $160 per year, from Sept 1, 2025 until Aug 31, 2028.
The third-year wage adjustment is subject to review due to the uncertain economic outlook.
The recommended PWM baseline gross wages for full-time resident retail workers, excluding overtime pay, will begin at the current gross wage and see a year-on-year increase of $130 per month.
"As the retail sector transforms and faces headwinds, so must our approach to helping our retail workers adapt and make progress in their career and wages," TCR chair and National Trades Union Congress (NTUC) assistant secretary-general Yeo Wan Ling said.
"In addition to raising wages for retail workers, the recommendations also help to build the foundation for a stronger and more future-ready retail workforce."
The PWM recommendations are part of a "sustained national effort to uplift lower-wage workers" and ensure fair compensation for their skills and contribution, the statement said.
They come amid a "challenging landscape" for the retail sector, where brick-and-mortar shops are experiencing shrinking footfall due to growing competition from e-commerce platforms and overseas retail alternatives.
The upcoming Johor Bahru-Singapore RTS Link set for 2026 is also a cause for concern for local retail.
Businesses also face rising operational costs, manpower shortages and evolving customer expectations, NTUC added.
To tackle these changes, aside from increased PWM wages, the TCR has also recommended refining job roles and descriptions.
These updates will incorporate expectations such as increased use of digital tools and technologies and a greater emphasis on customer service delivery, as well as a clearer distinction between supervisory roles.
The TCR also recommends expanding the list of approved workforce skills qualification (WSQ) training modules across all job levels.
Qualifications from institutes of higher learning such as polytechnics and ITEs will also be recognised as meeting PWM training requirements.
A whole-of-society support effort is also needed to uplift lower-wage workers in the retail sector, according to TCR.
Under their recommendations, employers are encouraged to invest in workforce training and productivity improvements, while consumers can play their part by supporting local retailers.
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khooyihang@asiaone.com