Singapore’s efforts to uplift lower-wage workers continue through a steady evolution of the Singapore PWCS 2025-26 support initiative. The Progressive Wage Credit Scheme (PWCS) is being expanded with increased government co-funding rates, updated salary eligibility brackets, and stronger enforcement under the national minimum wage scheme. This move reflects the government’s commitment to enhancing social mobility and narrowing income inequality.
Originally introduced in 2022, the PWCS was designed to support businesses in uplifting the salaries of lower-wage Singaporeans through co-funding. As announced in Budget 2025, the next phase of this initiative will cover wages paid from January 2025 to December 2026, offering higher wage support percentages and greater inclusivity for more workers.
The Singapore PWCS 2025-26 targets employers who voluntarily raise the wages of eligible employees, reinforcing long-term wage growth. This goes hand-in-hand with the broader Progressive Wage Model and strengthens the nation’s evolving minimum wage scheme without implementing a blanket wage floor.
PWCS 2025-26 Co-funding Details
Under the Singapore PWCS 2025-26, the government provides co-funding support for qualifying wage increases granted to eligible lower-wage employees. The following table summarizes the co-funding support structure for wage increases given in 2025 and 2026:
| Year of Wage Increase | Monthly Gross Wage Ceiling | Government Co-funding (%) |
|---|---|---|
| 2025 | Up to $2,500 | 30% |
| 2026 | Up to $2,500 | 25% |
| 2025–2026 (Tier 2)* | $2,501–$3,000 | 15% (2025), 10% (2026) |
*Tier 2 applies to employees in firms that have adopted the Progressive Wage Model or are covered by occupational Progressive Wages.
The enhanced co-funding rates demonstrate the government’s proactive response to rising costs and labor needs. This upgrade in the minimum wage scheme empowers employers to retain workers competitively while enabling employees to grow their incomes sustainably.
Who Is Eligible for PWCS 2025-26?
The Singapore PWCS 2025-26 focuses on low-wage Singaporean employees who are earning gross monthly wages up to $2,500 (Tier 1) or $3,000 (Tier 2, for PWM sectors).
To qualify:
-
The employee must be a Singapore Citizen
-
CPF contributions must be made on wages for the month the increase applies
-
Employer must not have reduced working hours or job scope unfairly
-
Wage increases must be sustained and not temporary
The updates are aligned with the evolving minimum wage scheme, encouraging upward mobility and career progression, especially in sectors such as cleaning, retail, food services, security, and landscape.
Impact on Workers and Employers
The Singapore PWCS 2025-26 changes are a win-win for both workers and employers. For workers, it ensures more consistent wage progression and improved retirement savings through CPF. For employers, it reduces the cost burden of wage increases and supports retention and productivity strategies.
Key impacts include:
-
Employers receive cash payouts automatically based on CPF records
-
Better long-term planning and wage forecasting for HR teams
-
Workers enjoy meaningful wage growth and recognition
-
Stronger compliance with the national minimum wage scheme roadmap
The Ministry of Manpower and Inland Revenue Authority of Singapore (IRAS) will continue to co-administer the scheme and conduct reviews to ensure fairness and efficiency.
Why This Matters in 2025 and Beyond
The enhanced Singapore PWCS 2025-26 reflects a deeper policy shift toward long-term sustainability in the labor market. As Singapore avoids a single flat minimum wage, the PWCS and Progressive Wage Model serve as more refined alternatives that promote both equity and flexibility.
The 2025–26 period is especially important because:
-
It marks the final enhanced co-funding phase before tapering begins
-
It supports economic recovery and rising living costs
-
It encourages employers to adopt fairer practices proactively
-
It helps integrate the minimum wage scheme into mainstream business strategies
This strategic approach allows for wage upliftment without reducing job opportunities or business competitiveness.
Conclusion
The Singapore PWCS 2025-26 signals a firm step forward in improving wage outcomes for lower-income workers while easing the transition for employers. This upgrade to the minimum wage scheme creates a structured, sustainable path for wage growth across various sectors, particularly those with historically lower salary bands. With automatic payouts, higher co-funding rates, and inclusive eligibility, the PWCS is evolving into a cornerstone of Singapore’s employment and social protection strategy. Businesses are encouraged to align early with the new standards and help build a more resilient and equitable workforce.
FAQs
What is the Singapore PWCS 2025-26?
The Singapore PWCS 2025-26 is an enhanced Progressive Wage Credit Scheme providing wage co-funding for employers who raise salaries of lower-wage Singaporean employees.
How does this relate to the minimum wage scheme?
The PWCS supports Singapore’s minimum wage scheme by encouraging wage progression through targeted co-funding rather than a universal wage floor.
Who qualifies for PWCS 2025-26 payouts?
Singaporean employees earning up to $2,500 (or $3,000 in certain sectors) qualify under the Singapore PWCS 2025-26 if wage increases are sustained and CPF-contributed.
Do employers need to apply for this scheme?
No application is required. Payouts under the minimum wage scheme are made automatically based on CPF contributions and wage records.
When will PWCS 2025-26 payouts be disbursed?
Payouts for the Singapore PWCS 2025-26 will be credited to employers by the first quarter of the following year (e.g., 2026 payouts will be made by Q1 2027).
Click here to know more.