Updated: 01/08/2014 23:30

Progressive Wage Model to be made mandatory for cleaning and security firms

Progressive Wage Model to be made mandatory for cleaning and security firms

The Government will introduce a mandatory licensing regime, making progressive wage model compulsory for cleaning and security firms. 

It will take effect as soon as September for cleaning firms. 

This was announced by Deputy Prime Minister Tharman Shanmugaratnam at the Best Sourcing Symposium this morning. 

Mr Tharman, who's also Finance Minister, says that cheap-sourcing practices have held down wages in the cleaning and security industry. 

He says a new Bill will be tabled in Parliament later this month to effect the change. 

With that, cleaners will receive better entry-level wages. 

Instead of a median gross wage of $850 per month, they'll receive $1000. 

Apart from better entry-level wages, workers will scale a wage-skill ladder where wages commensurate with skill level. 

This will also be the case for the security industry. 

Once the Progressive Wage Model for this industry has been decided, it will be incorporated into the existing licensing framework for security firms. 

Penalties will be imposed on firms that fail to comply. 

Mr Tharman emphasised that the Government's approach to mandate the Progressive Wage Model is "different from one of legislating a national minimum wage". 

"We want to raise incomes, while helping everyone, including those with less skills, to stay on the job ladder."

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