Why this matters now

On 11 August 2025, MOM announced the next round of Retail Progressive Wage Model (PWM) increases. From 1 September 2025, retail workers must earn at least the new PWM wage levels, with a multi-year schedule of sustained increases. Employers must adjust payroll, CPF, and budgeting to stay compliant.

Who is affected

  • Retail sector employers covered under PWM (full-time and part-time; part-time wages pro-rated).

  • Outsourced roles performing retail functions in PWM-covered establishments.

  • Businesses benefiting from Progressive Wage Credit Scheme (PWCS) co-funding through 2026 should plan how wage moves interact with PWCS claims.

What’s changing from 1 September 2025

  • Entry-level retail wage floor increases (MOM’s schedule sets new minima for each retail job level).

  • Part-time workers: wage floors are pro-rated based on a 44-hour week equivalent.

  • A three-year schedule continues to push wages upward, so plan beyond just FY2025/26

Action checklist for employers

  1. Map roles to PWM levels

    • Confirm each employee’s PWM job level matches actual duties and skills progression.

    • Keep written role descriptions to support audits. 

  2. Update payroll & CPF calculations

    • Adjust basic pay to the new monthly gross wage requirements before September payroll cut-off.

    • Recalculate CPF contributions after the wage update. (Refer to current CPF tables separately.)

  3. Review part-time arrangements

    • Pro-rate wages for part-timers correctly (44-hour basis).

    • Ensure itemised payslips reflect PWM level, hours, and components.

  4. Budget for multi-year increases

    • Build a 12–24 month forecast incorporating scheduled PWM steps and potential PWCS co-funding. 

  5. Update employment documents & SOPs

    • Issue variation letters/contracts reflecting new pay.

    • Refresh HR policies on progression, training, and performance criteria linked to PWM.

  6. Train managers & finance

    • Brief store managers on PWM job ladders and progression criteria.

    • Align finance on month-end checks so payroll files match PWM rules.

Common pitfalls to avoid

  • Using allowances to meet wage floors: PWM looks at gross wage definitions and pro-rating rules; ensure structure meets the letter of MOM’s guidance. 

  • Mismatched job titles vs duties: titles alone don’t determine PWM level—actual work performed does.

  • Late payroll adjustments: backpay errors can cascade into CPF corrections and vendor chargebacks.

How Excellence Singapore can help

  • PWM role mapping & compliance review for your retail workforce.

  • Payroll updates (salary files, CPF calculations, itemised payslips) and ongoing monthly processing.

  • Budget modelling that blends PWM increases with PWCS co-funding opportunities. 

  • Documentation pack: updated contracts/letters, SOPs, and audit-ready records.

Conclusion: Update now to stay compliant and control costs

The September 2025 PWM changes are firm—and more increases are already scheduled. Updating payroll, contracts and budgets before month-end keeps you compliant and minimises rework.

Contact us to run a fast PWM compliance check and get your payroll ready for the new wage floors.