The monthly wage increases from 2026 to 2028 are lower than the raises mandated under the PWM from 2023 to 2025.
In 2024 and 2025, eligible workers received a monthly salary increase of S$165 per year. That meant the entry-level salary rose from S$1,750 to S$2,080.
Minister of State for Manpower Dinesh Vasu Dash said the government, businesses and unions had robust discussions about the wage increases and decided that the amount was reasonable given the current environment, which is different from 2023.
"But we continue to keep watch of the sector and of economic times in the next couple of months and years," he said.
The food services PWM was introduced in March 2023, but the yearly increases from 2026 will take effect from July to align with the PWM for other sectors.
The Tripartite Cluster for Food Services noted that the industry faces challenges, including escalating operating costs and a labour shortage.
"Despite these challenges, the (tripartite cluster) is committed in its efforts to uplift the industry and improve the welfare of food services workers," it said in a report.
At Budget 2026, the government said it would extend the Progressive Wage Credit Scheme for two more years. The scheme supports employers as they adjust to mandatory wage increases under the PWM or voluntarily increase the salaries of lower-wage workers.
The government is also enhancing the co-funding support from 20 per cent to 30 per cent for wage increases given in the qualifying year 2026.
Food establishments that are not allowed to hire foreign workers on mainstream work passes, such as hawker or coffee shop stalls, are exempted from PWM requirements, but are encouraged to adopt them.
Other recommendations from the Tripartite Cluster for Food Services industry include refining job roles to reflect evolving needs and the recognition of more qualifications to meet the minimum training requirements.
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In 2024 and 2025, eligible workers received a monthly salary increase of S$165 per year. That meant the entry-level salary rose from S$1,750 to S$2,080.
Minister of State for Manpower Dinesh Vasu Dash said the government, businesses and unions had robust discussions about the wage increases and decided that the amount was reasonable given the current environment, which is different from 2023.
"But we continue to keep watch of the sector and of economic times in the next couple of months and years," he said.
The food services PWM was introduced in March 2023, but the yearly increases from 2026 will take effect from July to align with the PWM for other sectors.
The Tripartite Cluster for Food Services noted that the industry faces challenges, including escalating operating costs and a labour shortage.
"Despite these challenges, the (tripartite cluster) is committed in its efforts to uplift the industry and improve the welfare of food services workers," it said in a report.
At Budget 2026, the government said it would extend the Progressive Wage Credit Scheme for two more years. The scheme supports employers as they adjust to mandatory wage increases under the PWM or voluntarily increase the salaries of lower-wage workers.
The government is also enhancing the co-funding support from 20 per cent to 30 per cent for wage increases given in the qualifying year 2026.
Food establishments that are not allowed to hire foreign workers on mainstream work passes, such as hawker or coffee shop stalls, are exempted from PWM requirements, but are encouraged to adopt them.
Other recommendations from the Tripartite Cluster for Food Services industry include refining job roles to reflect evolving needs and the recognition of more qualifications to meet the minimum training requirements.
Continue reading...