How will enhanced leave contribute to professionalising the PWM sectors?

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Enhanced Leave Entitlement to Foster Professionalisation in PWM Sectors

The increase in minimum annual leave for outsourced Progressive Wage Model (PWM) workers aims to enhance the professionalisation of these sectors by improving employee retention and ensuring consistent service delivery. This measure is expected to cultivate a stable and dedicated resident workforce within sectors such as cleaning, security, landscape, lift and escalator maintenance, and waste management. The phased implementation, starting in 2029, will allow businesses adequate time to adapt to the new regulations, which will eventually raise the baseline annual leave from seven to 10 days for approximately 60 per cent of full-time resident employees aged 25 to 64 in these fields.
Strengthening Workforce Retention

The elevated minimum annual leave entitlement is designed to make these roles more attractive and sustainable for workers. By offering more paid time off, employers can better retain their existing staff, reducing the frequency of staff turnover. This improved retention is crucial for maintaining service continuity, as experienced workers are less likely to leave, thereby ensuring a more stable and skilled workforce.
Building a Resilient Core Workforce

A key objective of this policy is to foster a resilient core resident workforce. With enhanced leave benefits, these sectors can build a stronger foundation of long-term employees who are committed to their jobs. This stability is particularly important in outsourced PWM sectors where consistent service quality is paramount, and a reliable workforce directly contributes to the professional image and operational efficiency of the services provided.
Phased Implementation for Business Adaptation

Recognising the need for gradual adjustment, the Ministry of Manpower (MOM) will introduce the increased leave entitlement progressively from 2029. This phased approach provides businesses with a multi-year window to adjust their operational plans and financial projections. Such a measured rollout ensures that companies can integrate the new leave requirements without immediate disruption, facilitating a smoother transition toward higher standards of employment for PWM workers.

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How will enhanced leave contribute to professionalising the PWM sectors?

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