The Singapore government will increase the minimum annual leave entitlement for outsourced workers covered under the Progressive Wage Model (PWM) from seven days to 10 days, in a phased implementation beginning in 2029.
Announced by the Ministry of Manpower (MOM) following consultations with tripartite partners, the move is expected to benefit around 60% of outsourced workers across five PWM sectors, cleaning, security, landscape, lift and escalator, and waste management.
Minister of State for Manpower Dinesh Vasu Dash announced the enhancement at NTUC's Appreciating Our PWM Workers event, describing it as part of the government's broader effort to professionalise outsourced PWM sectors and strengthen Singapore's essential services workforce.
"This move is in line with our broader effort to professionalise outsourced PWM sectors, sectors that many of us rely on every day for essential services," he said. "It will enable these sectors to better attract and retain talent, harness a stable and capable core resident workforce, and deliver consistent, quality service."
The policy addresses a longstanding issue faced by outsourced workers whose annual leave entitlements are often reset when service contracts change hands.
Under current industry practice, workers rehired by a new service provider to continue in the same role or location may have their leave entitlement reverted to the statutory minimum of seven days, despite years of continuous service.
While the Employment Act provides employees with a minimum of seven days of annual leave in their first year, increasing by one day for each additional year of service up to a maximum of 14 days, outsourced PWM workers have often been unable to fully benefit from these provisions because of changes in employers tied to outsourcing contracts.
Under the new arrangement, resident outsourced PWM workers will receive a minimum of 10 days of annual leave, helping to better recognise their continuous years of service even when employers change. The enhancement will not affect the annual leave progression already provided under the Employment Act, and workers who already receive leave benefits above the new minimum will continue to do so.
The increase will be rolled out progressively from 2029, with the detailed implementation schedule to be determined by the respective sectoral Tripartite Clusters. MOM said the phased approach will give employers and service buyers sufficient time to incorporate the changes into future service contracts and manage the associated operational and cost implications.
The ministry said the enhanced leave entitlement also supports broader workforce objectives by improving employee retention and service continuity while strengthening the professionalisation of outsourced PWM sectors.
The announcement comes as Singapore continues to expand the Progressive Wage Model, which has grown from covering the cleaning sector in 2014 to benefiting more than 200,000 workers across multiple sectors and occupations. According to NTUC, entry-level salaries for cleaners have more than doubled since the PWM was introduced, rising from around S$1,000 in 2014 to S$2,080 today.
NTUC Assistant Secretary-General Melvin Yong welcomed the enhancement, saying it better recognises workers' years of service and improves their welfare. He also highlighted the need for continued investment in workforce development, noting that an NTUC survey of around 1,500 PWM workers found that more than half cited time constraints as the primary barrier to participating in upskilling programmes.