Changes to be rolled out in phases from 2029, MOM says
The Singapore government has announced that it is raising the baseline leave entitlement for outsourced progressive wage model (PWM) workers to 10 days starting in 2029.
In a statement, the Ministry of Manpower (MOM) said the change will affect approximately 60% of outsourced workers across five PWM sectors, including Cleaning, Security, Landscape, Lift and Escalator, as well as Waste Management.
"An increase in baseline leave entitlement will support the professionalisation of outsourced PWM sectors, many of which provide essential services, by strengthening retention and service continuity to build a resilient core resident workforce in these sectors," it said in the announcement.
The change will be implemented in phases from 2029 onwards, according to the government, citing the need to give businesses time to adjust to the expanded leave entitlement.
"The specific implementation timeline will be further discussed by the respective sectoral Tripartite Clusters," it said.
"This will allow employers and service-buyers to plan ahead and incorporate the change into their contracts, and better manage the operational and cost impact. Implementation details will be shared closer to the implementation date."
Why expand leave entitlements?
MOM attributed the expanded benefits to gaps that put outsourced PWM workers at a disadvantage when it comes to leave entitlements.
Outsourced PWM workers in Singapore currently have seven days of leave entitlement in their first year of service, which expands by one day per year of service with the employer to up to a maximum entitlement of 14 days.
However, the government noted that the nature of employment arrangements for PWM workers makes them unable to fully benefit from these entitlements.
"For instance, when a new service provider is appointed to take over a service contract, outsourced workers may be rehired by the incoming service provider while continuing to work in the same role or location, but their leave entitlement might be reset to the minimum of seven days as a common employment practice in these sectors," it said.
"This means that outsourced PWM workers may lose their accumulated leave benefits despite working in the same role continuously for many years."
The expansion ensures that outsourced PWM workers in Singapore receive leave entitlements that better reflect their continuous years of service, according to MOM.
It further noted that the new minimum should not affect the annual increase in leave that outsourced employees are currently entitled to under the Employment Act.
Workers who also receive leave benefits above the new minimum should continue receiving them, it added.
"MOM will continue to work with tripartite partners to ensure the smooth implementation of the enhanced leave entitlement to improve the well-being of outsourced PWM workers, while supporting businesses through this transition," the ministry said.
