Key takeaways
- The Food Services sectoral PWM has been in force since 1 March 2023 and now covers more than 53,000 full-time and part-time workers — it sets a legal minimum basic wage by job role, enforced as a condition of your foreign-worker pass renewals, not as a standalone minimum-wage law.
- A new wage schedule starts 1 July 2026, moving the ladder onto an annual 1 July step-up (replacing the old 1 March cycle); by the third step-up on 1 July 2028, entry-level basic wage reaches $2,500/month, holding at that rate until the schedule ends 30 June 2029.
- The Local Qualifying Salary (LQS) — the wage floor for local staff not on the PWM job ladder — rose to $1,800/month full-time ($10.50/hour part-time) from 1 July 2026, up from $1,600/month.
- The Progressive Wage Mark (PW Mark) is required to bid for government tenders (since 1 March 2023) and quotations (since 1 March 2024); it’s administered by the Singapore Business Federation, not a government agency directly.
- The Progressive Wage Credit Scheme co-funds part of your wage increases automatically — no application needed, IRAS calculates it from CPF contribution data.
If you run a coffee shop, quick-service outlet, restaurant or catering kitchen in Singapore and employ any foreign worker, the Progressive Wage Model (PWM) already sets your legal minimum basic wage by role — and a new wage schedule for the Food Services sector takes effect from 1 July 2026. Here’s what actually applies to your payroll, what it costs, and what you get back through co-funding.
What is the Progressive Wage Model, and does it apply to my F&B business?
The PWM is a tripartite (union, employer, government) wage-ladder scheme that sets minimum basic wages tied to job role and skill level in specific sectors. Unlike a general minimum wage, it’s enforced as a condition of work-pass issuance and renewal — the Ministry of Manpower (MOM) can refuse or suspend Work Permit, S Pass and Employment Pass approvals for employers who don’t pay covered local employees at or above their PWM wage level.
The Food Services sectoral PWM took effect on 1 March 2023 and covers Singaporean and PR employees working as food stall assistants, kitchen assistants, counter attendants and cooks in eligible F&B outlets — MOM reports it now covers more than 53,000 full-time and part-time workers in the sector.
What’s the current Food Services wage ladder, and when does it step up next?
Following tripartite recommendations accepted in March 2026, the wage ladder moves onto a new schedule from 1 July 2026, replacing the previous 1 March step-up cycle that had run since 2023. The ladder splits outlets into two categories:
| Category | Role | Minimum basic wage (from 1 Jul 2026) |
|---|---|---|
| Category A — Quick Service / supermarkets with ready-to-eat food | Food/drink stall assistant | ≥$2,220/month |
| Category A | Kitchen assistant / counter attendant | ≥$2,295/month (≥$12.04/hour) |
| Category A | Cook | ≥$2,470/month (≥$12.95/hour) |
| Category B — Full-Service restaurants, caterers, central kitchens | Kitchen assistant | ≥$2,320/month (≥$12.17/hour) |
| Category B | Cook | ≥$2,520/month (≥$13.22/hour) |
| Both categories | Senior cook | Determined by market forces (no fixed PWM floor) |
The schedule steps up again on 1 July 2027 and 1 July 2028, by which point the entry-level basic wage on the ladder reaches $2,500/month; that rate then holds until the schedule’s validity end-date of 30 June 2029. If you’re budgeting payroll for FY2026/27, build in this uplift now rather than at renewal time — MOM ties compliance directly to your ability to renew existing work passes.
What is the Local Qualifying Salary, and how is it different from the sectoral PWM?
The Local Qualifying Salary (LQS) is a separate, economy-wide floor that applies to every local employee not already covered by a sectoral or occupational PWM — think cashiers, admin staff or delivery coordinators on your payroll who don’t fall under the Food Services job ladder above. From 1 July 2026, the LQS rose to $1,800/month for full-time staff and $10.50/hour for part-time staff (under 35 hours/week), up from $1,600/month. Any F&B business that hires foreign workers must meet the LQS for its other local staff as well as the sectoral PWM for covered roles.
What is the Progressive Wage Mark, and do I need it?
The Progressive Wage Mark (PW Mark) is an accreditation confirming your business pays all PWM-covered local employees at or above their wage ladder, and all other local employees at or above the LQS. It’s administered by the Singapore Business Federation (SBF) on behalf of the tripartite partners, with applications through SBF or the GoBusiness portal — not a MOM approval.
You need it if you want to bid for government tenders (required since 1 March 2023) or quotations (required since 1 March 2024) — this also binds your subcontractors. A higher tier, “PW Mark Plus,” additionally requires adopting the Tripartite Standard on Advancing Well-being of Lower-Wage Workers (things like rest days, no illegal wage deductions, and access to upskilling).
How much of my wage increase does the government actually help cover?
The Progressive Wage Credit Scheme (PWCS) co-funds part of the wage increases you give lower-wage local employees — you don’t apply for it; IRAS computes and pays it automatically based on your CPF contribution records. For qualifying wage increases given from 2025 to 2028, the scheme uses a single wage ceiling of $3,000/month gross, with co-funding at 40% in 2025 and 30% in 2026 (Budget 2026 raised the 2026 rate from an originally-planned 20%). Employees whose wages exceed $4,000/month after the increase are not eligible.
What happens if I don’t comply?
Non-compliant employers cannot apply for new or renew existing work passes for any foreign worker until wages are corrected. MOM has previously suspended work-pass access for employers found underpaying covered staff after routine PWM compliance inspections. If you employ any Work Permit, S Pass or Employment Pass holder, PWM and LQS compliance is a prerequisite to keeping that headcount — not just a wage floor.
Frequently asked questions
Does the Food Services PWM apply to hawker stall owner-operators themselves?
The PWM sets minimum basic wages for employees in covered roles — food/drink stall assistants, kitchen assistants, counter attendants and cooks. A self-employed hawker who doesn’t draw a formal wage isn’t “paying” themselves under the scheme, but any employee they hire into a covered role must be paid at or above the applicable ladder rate.
Is the Progressive Wage Mark compulsory for every F&B outlet?
No — it’s compulsory only if you want to bid for government tenders or quotations, where it’s required of the main contractor and any subcontractors. Outlets that don’t do government-linked business can operate without it, though many still apply for the credibility and CSR signalling it provides to consumers and staff.
How do I know which wage ladder category my outlet falls under?
MOM splits Food Services into Category A (quick-service restaurants and supermarkets selling ready-to-eat food) and Category B (full-service restaurants, caterers and central kitchens). The distinction is based on service model, not outlet size — check MOM’s Food Services sector PWM page for the precise scope if your format is a hybrid.
Does the Progressive Wage Credit Scheme require any paperwork from my business?
No application is needed. IRAS computes eligible payouts automatically from the wage increases reflected in your employees’ CPF contribution records and disburses the credit directly — typically the year after the qualifying wage increase is made.
What’s the fastest way to check if my current payroll already complies?
Map every local employee to either a PWM job-ladder role or the LQS floor, then compare their current gross basic wage against the 1 July 2026 figures in this article. Any shortfall needs correcting before your next work-pass renewal, since MOM ties PWM/LQS compliance directly to pass approval.
