PM Lee Hsien Loong delivered his National Day Rally speech on 29 August 2021, where he had spent some time focusing on the current employment rules and regulation. There have been some changes made to the rules and regulations of a workplace which may benefit many locals who are currently facing difficulties in this pandemic situation. The main takeaways were as follows: • Guidelines for fair employment to be enshrined in law • Tightened criteria for work pass holders • More support provided for lower-wage workers We would like to take this opportunity to share what was mentioned and our views on it. Feel free to contact us if you have any enquiries.

1. PM Lee’s National Day Rally Speech 2021
Updates on Workplace

2. Progressive Wage Model
What is it?
• It helps to increase wages of Singaporean or PR workers in the cleaning, security and
landscape sectors via skills upgrading and productivity improvement
Updates
• It will be extended to the retail sector by 01 September 2022
• It will be extended to the food services and waste management sectors. It will also
cover specific occupations such as administrative assistants and drivers across all
sectors simultaneously by 01 March 2023
• Implementation of Progressive Wage Mark
Probable Implications
• Increased cost of doing business
• More focus on local workforce to fulfil positions in affected sectors
• More emphasis on technology to reduce manpower and improve productivity
Potential Action Plans
• Obtaining the Progressive Wage Mark
• Develop Learning and Development pathways to provide internal career progression
• Implement technology to improve productivity

3. Local Qualifying Salary Scheme
What is it?
• It is a wage threshold that is set by the Ministry of Manpower to determine how
Singaporean or PR employees can be counted as the company’s entitlement for
foreign worker quota
Updates
• By 01 September 2022, employers are required to pay all Singaporean or PR
employees a minimum wage of $1,400 as long as they intend to employ foreign
workers. However, the quota for hiring foreign workers remains the same
Probable Implications
• Increased cost of manpower
• Increased cost for services
• Tougher to hire Work Permit and S Pass holders
Potential Action Plans
• Re-design job scope and upgrade employee skills
• Outsource Services (Payroll, Accounting, HR Admin, cleaning, etc.)
• Offshore tasks or services that can be done remotely (data entry, accounting,
receptionist, etc)

4. Work Pass Holders
Updates
• Criteria for Employment Pass (EP) and S Pass holders will be tightened progressively
to give priority to Singaporeans over jobs first and if these pass holders are of the
right standard
Probable Implications
• Minimum salary for work pass holders may increase as it was raised in the past 2
years
• Tougher to hire work pass holders
• May cost more to hire local workers if employee is required to be fluent in a specific
language apart from English and their mother tongue
Potential Action Plans
• Hiring Singaporean or PR workers’ spouse as they are eligible for Pre-approved Letter
Of Consent (PLOC)
• Offshore or outsource employment

5. Tripartite Alliance for Fair and Progressive
Employment Practices (TAFEP)
What is it?
• It was set up in 2006 by Ministry of Manpower, National Trades Union Congress and
Singapore National Employers Federation. It aims to promote the adoption of fair,
responsible and progressive employment practices
Updates
• TAFEP guidelines will be enshrined in law, giving the authorities a wider range of
options to ensure fair treatment at the workplace
• A tribunal will be created to deal with workplace discrimination based on nationality,
gender, age, race, religion and disability
Probable Implications
• Employers must spend more resources to abide and review TAFEP guidelines that are
now made into law
Potential Action Plans
• Engage a Human Resource Consultancy firm such as Magenta to manage and advise
on new requirement and changes as they arise

6. Thank You
If you have any queries, feel free to contact us at
mcs@asia.magenta-consulting.com
Tel: 6720 6363