Media release on the implementation of a PWM bonus

Issued by the Tripartite Cluster for Landscape Industry

2 July 2019

MEDIA RELEASE

TRIPARTITE CLUSTER FOR LANDSCAPE INDUSTRY RELEASES DETAILS ON IMPLEMENTATION OF PROGRESSIVE WAGE MODEL BONUS FOR LANDSCAPE MAINTENANCE EMPLOYEES TAKING EFFECT FROM 1 JANUARY 2020

1. In November 2018, the Tripartite Cluster for Landscape Industry (TCL) recommended enhancements to the Progressive Wage Model (PWM)^[1] for the landscape maintenance sub-sector. This included a mandatory PWM Bonus to be paid annually to eligible resident landscape maintenance employees from 2020. The Government accepted the recommendations and announced that the mandatory PWM Bonus would take effect from 1 January 2020, under the Landscape Company Register (LCR) administered by the National Parks Board. An estimated 3,000 resident landscape maintenance employees stand to benefit.

    

2. Besides helping to uplift the total income of the workers, the PWM Bonus will serve to enable employers to better attract and retain their workers. In turn, employers would be more likely to invest in workers’ training to raise productivity. In this aspect, the PWM Bonus is not tied to workers’ performance.

PWM Bonus effective 1 January 2020 onwards

3.       In an addendum to the 2018 TCL Recommendations^[2] issued today, the TCL sets out the recommendations for the implementation of PWM Bonus taking effect from 1 January 2020. Details can be found in Annex A.

4.       In summary, the PWM Bonus is payable to Singapore Citizen and Permanent Resident landscape maintenance employees who have worked for the same employer for at least 12 months. This condition is waived for circumstances beyond the workers’ control, such as if there is a change of service provider. Part-time landscape maintenance employees are also eligible, with the PWM Bonus to be calculated on a pro-rated basis.

5.       The total PWM Bonus paid to a worker in a given year must be at least two weeks of basic monthly salary. This must be reflected in the salary slip and is subject to prevailing CPF contribution rates by both employer and employee. The PWM Bonus must be paid at least once a year, but not more than twice a year.

6.       The TCL recognises that some landscape companies may already provide some form of variable bonuses to their workers. An employer would be deemed to have complied with the PWM Bonus requirements as long as the total sum of such bonuses paid in a year amounts to no less than the stipulated two weeks of the worker’s basic monthly salary.

Win-win outcomes for all stakeholders

7.       With the PWM basic wage levels set to increase yearly starting from 1 July 2020^[3], the TCL recommends that service providers renegotiate existing contracts with their service buyers to take into account both the new PWM wages and PWM Bonus for landscape maintenance employees. Service buyers are discouraged from extending existing contracts unless they are prepared to vary contract prices to take into account the new PWM wage schedules going forward.

8.       NTUC Assistant Secretary-General Zainal Sapari, who is also Chairman of the TCL, said, “Following the earlier PWM recommendations made by the TCL, the implementation of a PWM Bonus is another positive step towards uplifting the wages and work prospects of our landscape maintenance employees. Importantly, all stakeholders stand to benefit – workers from better wages and career progression; service providers from better staff retention as well as a more motivated and productive workforce; and service buyers from better service outcomes.”

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Additional quotes for reporting

Mr Felix Loh

TCL Co-Chair and Council Member, Singapore National Employers Federation

The implementation of the PWM Bonus signals the industry’s collective commitment towards uplifting the landscape sector. Not only will all stakeholders especially our workers stand to benefit, it will also ensure Singapore remains a vibrant garden city for many years to come

Ms Jacqueline Allan

Acting Chairman, Landscape Industry Association Singapore

The PWM Bonus will help boost the incomes and morale of our resident landscape maintenance employees. We believe this will also improve staff retention and encourage our companies to invest in workers’ training, as our industry gears towards better service delivery and higher value jobs.

Mr Tony Khoo

President, International Facilities Management Association (Singapore Chapter)

With the impending wage increases and PWM Bonus, I am heartened to know that the hard work put in by our local landscape maintenance employees is given due recognition. Through better wages and career progression, the landscape industry is poised to develop a more engaged and professional workforce.

For media queries, please contact:

Jannah Ismaeil

Senior Consultant, Strategic Communications

National Trades Union Congress

DID    6213 8189

HP     9660 8312

Email  nurul_jannah@ntuc.org.sg

Annex A

Recommendations for implementation of the PWM Bonus effective from 1 January 2020

1. The TCL recognises that some landscape companies may already provide some form of variable bonuses to their workers. A landscape company would be deemed to have complied with the PWM Bonus requirements as long as the total quantum of such bonuses in a year amounted to no less than the stipulated two weeks of the worker’s basic monthly wage.

    

2. The PWM Bonus quantum payable in 2020 (i.e. year of implementation) will be computed from 1 January 2020.

    

3. Landscape companies should stipulate a company policy to determine which month(s) of the year to be set as the cut-off date for the PWM Bonus computation. However, they must pay the PWM Bonus within one month from the cut-off date, or on the worker’s last day of employment, whichever is earlier.

    

4. The PWM Bonus must be paid at least once a year, but not more than twice a year. Landscape companies can also consider paying the PWM Bonus on the employment anniversary date of their landscape maintenance employees.

    

5. To ensure all eligible landscape maintenance employees receive the PWM Bonus, such payment must be reflected in the salary slips and subject to CPF contributions by both employer and employee.

    

6. In the event of a discontinuation of employment, landscape companies must ensure that all outstanding PWM Bonuses are paid to eligible employees by the final day of the employee’s employment.

    

7. A summary of the various scenarios and whether PWM Bonus is payable is depicted in the following table.

    

    

   * Any PWM Bonus already made to the worker prior to the termination date must not be clawed back, as long as the worker had met the length of service eligibility as at the company’s cut-off date for the last PWM Bonus computation.

   
   Change in Service Provider

    

8. As landscape maintenance services are predominantly outsourced, payment of the PWM Bonus would need to account for the scenario where there is a change of service provider, i.e. when an incumbent service provider did not get its contract renewed or lost in its bid for a new contract.

    

9. As a change of service provider is not within the control of the workers, the incumbent service provider must pay a pro-rated PWM Bonus to landscape maintenance employees even if they do not have the minimum 12-month length of service.

    

   Implementation of a minimum 3 per cent annual increment (subject to review) from 2023 to 2025

    

10. The TCL agreed to implement the minimum 3 per cent annual increment (subject to changes) to PWM wage levels from 1 July each year from 2023 to 2025 across all landscape maintenance PWM job levels. This aligns with the 1 July implementation date of the yearly adjustments to PWM wage levels from 2020 to 2022.