Singapore Minimum Wage | Guide 2025

Singapore has no annual minimum wage.

The National Wages Council makes pay recommendations, but they're not legally binding.

Instead, Singapore relies on the Progressive Wage Model (PWM). This sets base wages for citizens and permanent residents in specific sectors. In fact, up to 9 in 10 lower-wage workers benefit from this wage model as it changes from year to year.

This means understanding these sector-specific wage requirements for employers and HR professionals beyond considering education, experience, and skill sets. Also, as wages constantly update, companies must keep spot-on wage calculations to guarantee compliance with the most recent guidelines. 

Getting these requirements right matters for both compliance and smart hiring. So read along as we break down:

• How the Progressive Wage Model works
• Wage rules for different work passes
• Practical insights for payroll compliance

Let's get into the details.

Understanding Singapore's Wage Structure and Progressive Wage Model

Singapore follows the Progressive Wage Model (PWM), which sets minimum wages for certain industries covering over 155,000 employees. While not a legal minimum wage, the PWM prescribes base pay for specific economic sectors. The “wage” referred to by the PWM is the basic monthly salary, without factoring in bonuses, overtime pay, or any other extra compensation. 

This model sets a bare minimum pay for a citizen or a permanent resident employee employed (part-time or full-time). It includes pay ladders for several employment categories, which fit the most frequently seen positions in that sector. Employers must ensure they pay progressive wages based on qualifications and job levels.

Companies that violate PWM face severe penalties, with many fined for non-compliance since its inception in 2014. 

Here’s the table on the recent PWM Singapore minimum wage for businesses to stay compliant and plan workforce costs more effectively.

Note: The minimum wage in each sector rises as employees gain experience and move into higher-skilled roles. For example, cleaners in conservancies who promote refuse collectors will have a base salary of $2,270 from 1st July 2024 until 30th June 2025. Further, if promoted to supervisors, the pay increases to $2,455, and the next increases as truck drivers earn $2,620.

For further details on the recommended minimum wages by PWM, check out the Ministry of Manpower (MOM) website.

Minimum Wage Requirements for Different Work Passes

While Singapore does not have a minimum wage law, employers must still meet wage requirements for hiring foreign workers under different work passes. Here’s what you need to know:

Employment pass 

An Employment Pass (EP) is for managers, executives, and international professionals working in Singapore. Candidates need a job offer in Singapore to apply for an EP. From January 2025, they should earn at least $6,200 (financial services) or $5,600 (others), with higher pay required for experienced hires.

S pass 

The S Pass is for skilled workers with relevant credentials and experience who don’t qualify for an EP. As of January 2025, they must earn at least $3,650 per month in financial services and $3,150 in other sectors. Those with more experience will need a higher salary to qualify.

Work permit (Local Qualifying Salary (LQS)) 

Companies hiring foreign workers must pay local workers (Singaporeans and Permanent Residents) at least $1,600 monthly or $10.50 hourly under the LQS. A firm's eligibility for the foreign worker quota depends on the number of local workers earning the LQS. Currently, employees who are either Singaporean or employed under a contract of service are counted as:

• 1 local worker with a monthly LQS income of $1,600 or more. 
• 0.5 of local worker if their monthly LQS is between $800 and $1,600.

For monthly-rated part-time workers, employers must make sure that the hourly rate meets this requirement by using the following formula:

Total monthly gross wages ÷ total hours worked in the month.

What Employers Need to Be Aware Of

The following are a few of the details employers should be aware of regarding PWM:

• Employers must ensure that employees are able to meet the PWM training requirements and may use Workfare Skills Support to subsidize training costs. Upon satisfying the required criteria, employees will receive better compensation. 

• Also, until 2026, the government will co-fund qualified pay raises for lower-income workers under the Progressive Wage Credit Scheme. Employers covered by the PWM can expect a payout for the corresponding year; this program offers transitional pay support to help them adjust to forthcoming mandated pay increases for lower-wage workers.

More employees will be able to benefit from higher pay as the PWM gets updated and includes new sectors. Compliance with the PWM and its minimum wage regulations is mandatory for industries it covers. Employers must follow all guidelines to keep their company licenses from being revoked.

Ensure Spot on Salary Calculation Every Time

PWM compliance adds another layer to the already complex payroll calculations. Adding a large workforce with diverse schedules and manual calculations can be even more daunting. Also, there are various payroll calculation criteria to consider.

Salary is computed based on a whole calendar month, regardless of the total number of days. An incomplete month refers to situations where an employee:

• Begins work after the first working day of the month.
• Leaves employment before the month ends.
• Takes any unpaid leave.
• Is on national service reservist training during the month

The following formula is how you can calculate salary for an incomplete month: 

Monthly gross pay / Total workdays in the month X Total days the employee worked in the month.

Under the Employment Act, an employer must pay their employees a minimum one-month salary. Should they so want, the company might potentially pay the compensation at smaller intervals. Employers must pay the salary:

• 7 days following the end of the pay period or
• In case of overtime, 14 days following the end of the pay period.

Given the complexities of payroll calculations and the fact that PWM only applies to base pay (excluding overtime, bonuses, and other remuneration), it's clear that manual processes can be challenging. This is where an all-inclusive HRMS solution, Darwinbox, steps in. 

Based on the RIVeR framework, Darwinbox streamlines payroll handling using a 4-step method. 

✅Automates inputs and calculations: Payroll processing starts with an automatic review of inputs from Darwinbox's unified HCM system. With real-time data on headcount, FTE hours, loss of pay, and benefits, organizations get an accurate, up-to-date view. By eliminating manual entry and reducing errors, Darwinbox ensures a smooth start to payroll.

✅Initiates payroll: With a single click, the RIVeR framework lets you manage different employee types, locations, and pay cycles on a single platform, ensuring smooth payroll running every time.

The RIVeR framework simplifies payroll by handling diverse employee types, locations, and pay cycles on a single platform with just one click. Whether managing global payroll complexities or ensuring consistency for a smaller business, Darwinbox keeps every payroll cycle running effortlessly and compliant, no matter the region or regulations.

✅Verify and e-approve: Traditional payroll processes rely on offline verification and approval, often managed through endless email chains between HR, finance, and payroll teams. Darwinbox eliminates this inefficiency by digitizing the entire process, bringing all stakeholders onto a single platform for seamless collaboration.

With customizable checklists and automated workflows, e-approvals with finance move forward without delays. Real-time collaboration tools, including embedded chat functions, further streamline the process, reducing back-and-forth communication.

By centralizing payroll approvals and offering full visibility, Darwinbox gives organizations complete control, allowing for necessary adjustments before finalizing payroll.

✅Release and report: The final stage of the RIVeR framework finalizes payroll, generates reports with a single click, and distributes payslips. Detailed cost dashboards break down payroll expenses by region, employee type, and department. These insights help organizations refine payroll strategies and ensure compliance with regulatory requirements.

Darwinbox also provides audit readiness to guarantee compliance, reducing record-keeping concerns. Real-time audit trials, record-keeping, and the automation of standardized reports guarantee the transparency of payroll processes. 

Notable features: 

• Built for seamless connectivity: Darwinbox integration suite works well with 15+ compensation APIs and pushes data through 200+ outbound channels. Banks in its standard JV integration are already in use in the Philippines, tested, proven, and reliable.
• Smart processing that saves resources: Delta processing runs with your payroll, moving only changed data. This cuts down transfer volumes and speeds up the entire process.
• Compliance made clear: Each payroll run comes with its essential package - compliance reports, variance checks, salary registers, and custom checklists. Everything you need, nothing you don't.
• Visual data that works: Connect directly to Power BI and Tableau. Watch your payroll data transform into analytics and visualizations that make sense.
• Data that speaks clearly: The cost dashboard puts budget analysis, trends, and patterns right where you need them. Break down salary differences across your organization - from departments to divisions, group companies to business units.

Streamline your HR processes with Darwinbox 

Failing to comply with the PWM, such as not paying the minimum wage or required bonuses to eligible workers, can lead to violations. Organizations in PWM-covered industries must meet licensing requirements, and non-compliance puts their licenses at risk. 

If you breach PWM guidelines, you may receive warning letters or fines. In more serious cases, your license may be suspended or revoked.

Darwinbox makes PWM compliance simple. Its automated HR and payroll solutions ensure your business handles the payroll process effortlessly. With built-in compliance checks for local and global regulations, your payroll stays audit-ready. Your payroll admins spend less time crunching data and more time driving business value.

Schedule a demo to learn more about how Darwinbox can support you!

FAQs

What is the minimum salary for a Singaporean?

Singapore does not follow a traditional minimum wage system. The government sets the Local Qualifying Salary (LQS) as a mandatory threshold for companies employing foreign workers. To meet this requirement, businesses must pay their local full-time employees at least S$1,600 per month.

What is the hourly rate in Singapore?

The hourly wage in Singapore depends on factors like industry, job role, and experience level. With an average monthly salary of S$4,000 and a typical 42.8-hour workweek, the estimated hourly wage comes to around S$23.36.

What is Singapore's monthly salary?

Singapore ranks among Asia's highest-paying countries, offering a median monthly salary of SGD 5,500 in 2024. The city-state has a strong demand for skilled professionals, particularly in sectors such as information technology, banking, engineering, and healthcare.

Is 7000 Singapore dollars a good salary?

Yes, earning SGD 7,000 per month provides a comfortable and decent lifestyle in Singapore. With careful budgeting and the right location, individuals can also set aside savings for future needs.