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Why should your company apply for the PW Mark?

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Smart-Towkay and Singapore Business Federation

Apr 11, 2024

Why should your company apply for the PW Mark?

This article is co-writtern by Smart Towkay and Singapore Business Federation.

What is the Progressive Wage Mark? Introducing Two Tiers of Accreditation

Launched in January 2023, the Progressive Wage Mark (PW Mark) is an accreditation scheme that recognizes eligible firms that pay progressive wages to lower-wage workers. It is administered by the Singapore Business Federation on behalf of the Tripartite Partners.

PW Mark - To be accredited, employers need to pay Progressive Wages – at least the Progressive Wage Model baseline wages to eligible workers, and at least the Local Qualifying Salary* to all other local workers.

*From 1 July 2024, the LQS will increase from $1,400 to $1,600 for full-time local employees, and from $9 per hour to $10.50 per hour for part-time local employees.

IMAGE: PW MARK, sbf.org.sg

PW Mark Plus - The PW Mark Plus extends recognition to employers that are eligible for the PW Mark and adopt the Tripartite Standard on Advancing Well-Being of Lower-Wage Workers.

Eligible Government suppliers are now required to be accredited with the PW Mark for Government tenders and quotations.

IMAGE: PW MARK Plus, sbf.org.sg

What are the benefits of the PW Mark?

Adopting the PW Mark brings several benefits to companies, including enhancing their ability to attract and retain talents, improve productivity levels, and boost employee engagement. Here's a more detailed look at the impact:

Better Recognition and Corporate Image

Companies with the PW Mark are recognized as progressive employers that prioritize sustainable employment practices and social responsibility. This positive image can resonate with customers, investors, and potential employees, providing a competitive advantage in the market. The higher-tier accreditation further amplifies this recognition, demonstrating industry leadership in fair employment practices.

Talent Attraction and Retention

By offering progressive wages and clear career pathways, companies with the PW Mark become more attractive to job seekers, especially in sectors with high turnover rates. Workers are more likely to join and remain with employers that value their skills, provide growth opportunities, and offer fair compensation. This can help businesses reduce recruitment and training costs associated with high attrition rates.

Improved Productivity and Employee Engagement

By paying Progressive Wage Model wages, employees receive annual wage increases, and are encouraged to upgrade their skills through training. This can lead to a more skilled and productive workforce. When employees feel valued and rewarded for their contributions, they are more likely to be engaged and motivated in their work.

Sustainable Workforce Development

PW Mark companies can adopt a sustainable approach to workforce development by aligning wages with skills and productivity. Companies can invest in training and upskilling their employees, knowing that their efforts will be rewarded with higher productivity and retention rates. This long-term approach to talent management can contribute to the overall competitiveness and growth of the business.

By adopting the PW Mark, businesses not only demonstrate their commitment to uplift lower-wage workers but also gain tangible benefits in terms of talent acquisition, employee engagement, and long-term workforce sustainability.

Improved Employee Well-Being

The PW Mark Plus contributes significantly to the well-being of lower-wage workers by fostering a positive and safe work environment and providing opportunities for career growth and development.

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How To Apply for PW Mark?

Eligible firms can apply for the PW Mark accreditation through two simple steps:

Complete MOM's Occupational Employment Dataset (OED) on the Portal.

Log in to GoBusiness using corporate SingPass access and fill out a brief application form on the GoBusiness portal, taking approximately 5 minutes.

Applicants will typically receive the outcome within 5 business days. However, if adjustments are required due to inaccuracies in your firm's Occupational Employment Dataset (OED), the process may extend to up to 4 weeks.

For enquiries, contact the Ministry of Manpower hotline at 6438 5122 from Monday to Friday (excluding public holidays), 8:30am to 5:30pm, or send an email enquiry at mom_oed@mom.gov.sg.

Supporting Employers with the Progressive Wage Credit Scheme (PWCS)

To encourage employers to uplift lower-wage workers and support employers in adjusting to the Progressive Wage Model and Local Qualifying Salary requirements, the PWCS provides employers transitional support by co-funding wage increases for lower-wage workers. The PWCS has been enhanced to provide:

Increase in co-funding support for wage increases given in 2024
Increase in wage ceiling for 2025 and 2026

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Source: Ministry of Manpower

For more information, visit the IRAS website.

Conclusion

Companies with the PW Mark help to uplift lower-wage workers by paying progressive wages, providing clear career pathways, and upskilling opportunities.

Eligible firms are encouraged to apply for the PW Mark and lead by example in supporting lower-wage workers.For accreditation inquiries, please email pwmark@sbf.org.sg.

For SMEs who are keen to find out more, they can sign up here to receive a notification when there is an upcoming information-sharing session: https://forms.office.com/r/F9MCBj8cZq