Retail Progressive Wage Model (PWM) Update: What Singapore Employers Must Do from September 2025

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

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.
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.)
Review part-time arrangements
- Pro-rate wages for part-timers correctly (44-hour basis).
- Ensure itemised payslips reflect PWM level, hours, and components.
Budget for multi-year increases
- Build a 12–24 month forecast incorporating scheduled PWM steps and potential PWCS co-funding.
Update employment documents & SOPs
- Issue variation letters/contracts reflecting new pay.
- Refresh HR policies on progression, training, and performance criteria linked to PWM.
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.