Lower-wage retail workers to receive up to 6% pay bump from Sept 1

Lower-wage resident retail workers can expect an annual salary bump ranging from 5.1 per cent to 6 per cent over the next three years.

- Sharon Salim Business Correspondent

Full-time retail staff will receive these increments, amounting to $130 to $160 per year, from Sept 1, 2025, to Aug 31, 2028.

Part-timers who work less than 35 hours a week can also expect an increase of close to 6 per cent in their hourly gross pay from Sept 1, before further hikes in subsequent years.

The pay increase from Sept 1, 2027, is subject to review in 2026, as it may be adjusted upwards if the economic situation improves.

The announcement was made by the Tripartite Cluster for Retail Industry (TCR) on Aug 11, after the Government accepted its new recommendations on the Progressive Wage Model (PWM) for the retail sector.

The recommendations were drawn up after close to nine months of consultations with the unions, retail employers, industry associations and government representatives. Over 300 retail workers were also surveyed.

TCR introduced its first set of recommendations in 2022, leading to an annual pay hike of 8.4 per cent to 8.5 per cent over three years for lower-wage retail staff who are Singaporeans and permanent residents.

In a press release on Aug 11, the National Trades Union Congress (NTUC) said TCR has taken a "balanced and pragmatic approach" while proposing the new round of more modest wage hikes, given the challenges facing employers in the retail sector.