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Annual leave for outsourced Progressive Wage Model workers to increase from 7 to 10 days from 2029
🇸🇬 Singapore /Economy & Trade

Annual leave for outsourced Progressive Wage Model workers to increase from 7 to 10 days from 2029

From CNA · () English

Summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Singapore will increase minimum annual leave for outsourced workers under the Progressive Wage Model (PWM) from 7 to 10 days, starting progressively from 2029.
  • This change aims to better reflect workers' continuous service, as they often lose accumulated leave when contracts change hands.
  • The move, supported by tripartite partners, is expected to improve retention, recognize service, and enhance workforce stability in sectors like cleaning and security.

Outsourced workers in Singapore covered by the Progressive Wage Model (PWM) will see their minimum annual leave entitlement increase from seven to 10 days, with the change rolling out gradually from 2029. The Ministry of Manpower (MOM) announced the move, developed in consultation with tripartite partners, to benefit workers across five key PWM sectors: cleaning, security, landscape, lift and escalator, and waste management.

This means that outsourced PWM workers may lose their accumulated leave benefits despite working in the same role continuously for many years.

— Ministry of Manpower (MOM)MOM explaining the problem of leave entitlement resets for outsourced workers when service contracts change.

This initiative addresses a persistent issue where outsourced workers, employed by service providers but working at client companies, often lose their accumulated leave benefits. When service contracts change, workers may be rehired by new providers but their leave entitlement can reset to the minimum seven days, despite continuous service in the same role. MOM highlighted that this practice meant workers could lose years of accrued leave.

better reflect their continuous years of service

— Ministry of Manpower (MOM)MOM stating the objective behind raising the minimum leave entitlement for outsourced PWM workers.

The decision to raise the minimum leave aims to "better reflect their continuous years of service" and ensure their employment conditions "remain protected" even with employer changes. This aligns with calls from labor representatives, such as NTUC Assistant Secretary-General Melvin Yong, who previously pointed out that leave stagnates at the statutory minimum due to contract changes.

remain protected

— Ministry of Manpower (MOM)MOM explaining the goal of safeguarding employment conditions for outsourced workers.

By establishing a higher baseline within the PWM, the government and tripartite partners aim to strengthen worker retention, recognize accumulated service, and improve overall workforce stability. The ministry believes this will also allow service providers and buyers to price these improvements transparently into contracts. The phased implementation from 2029 will give businesses time to adjust, with specific timelines to be discussed within sectoral tripartite clusters.

As a result, their leave stagnates at the statutory minimum of seven days, despite years of service in the same job scope.

— Melvin YongMelvin Yong, NTUC Assistant Secretary-General, describing the issue of stagnant leave entitlements for PWM workers in February.
DistantNews Editorial

Originally published by CNA. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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