By Lucas Seah, Founder of Excellence Singapore Group | Last Updated: October 2026

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.

From 1 September 2025, the retail PWM wage floor for a full-time Retail Assistant/Cashier was at least S$2,305/month (gross). It has been at least S$2,435 since 1 September 2026 and rises to S$2,565 from 1 September 2027.
The Local Qualifying Salary rose to S$1,800/month on 1 July 2026 (up from S$1,600).

Who is affected

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

  • Singapore Citizen and PR staff in retail job roles employed by any firm that hires foreign workers, even if the firm is not classified under retail (for outsourced staff, it is their own employer that counts).

  • Businesses benefiting from Progressive Wage Credit Scheme (PWCS) co-funding, now extended to 2028, 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 each 1 September step (the next is 1 September 2027).

    • 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.

Lucas Seah, CEO & Founder, Excellence Singapore Group

CA (Singapore) · ASEAN CPA · Accredited Tax Practitioner (Income Tax & GST) · EMBA · CEI-Certified MOM-Registered Employment Agency Key Appointment Holder

Lucas founded Excellence Singapore in 2013 and has guided 4,000+ SMEs through incorporation, accounting, tax, corporate secretarial, work passes, trademark and intellectual property, and corporate finance matters. A Chartered Accountant (Singapore) and Accredited Tax Practitioner, he is also the MOM-registered, CEI-certified Key Appointment Holder for the group’s employment agency, which holds a Comprehensive Licence (All) under EA Licence 16C7944. He writes on Singapore business compliance, tax, immigration and corporate strategy.