Work permits suspended for two Singapore employers who underpaid their retail staff

SINGAPORE – Two employers who have consistently underpaid their retail workers despite several rounds of appeals with the Ministry of Workpower (MOM) will not be able to apply for or renew work permits for foreign workers until they resolve the underpayments.

Both employers operate retail stores and have been found to have underpaid a total of 12 retail employees by approximately $450 per person per month since April 2023, the ministry said in a June 6 statement.

They were among 4,100 retail and catering establishments inspected by the ministry between April 2023 and March 2024.

The inspections were carried out after a six-month run-in period following the introduction of the Progressive Wage Model (PWM) for each sector.

Low-income workers in retail have been subject to the PWM – a wage scale linked to further training and productivity increases – since September 2022. Employees in the food sector have been subject to the PWM since March 2023.

According to MOM, the six-month run-in period granted to each sector or occupation where the PWM is introduced is intended to give employers time to adapt to the new requirements.

MOM pointed out that this trend has now ended for all seven sectors and two occupations currently covered by the model, which account for 155,000 low-wage workers.

The ministry explained that the inspections were carried out in retail and catering establishments because these sectors employ a significant number of local full-time employees – a total of 87,000 – covered by the PWM.

MOM said: “Most employers reviewed meet the PWM requirements.

“Some were unfamiliar with the PWM requirements and did not comply initially, but corrected the wages after MOM explained the requirements.”

The Ministry announced that it would continue to monitor compliance with the PWM in all sectors through workplace inspections and audits, which would require employers to submit their employment records for inspections.

In addition, the company will work with the labour movement and employers, as well as public bodies that oversee the PWM sectors, with the aim of informing and helping employers meet their PWM requirements and pay workers their rightful wages.

The public authorities include the Building and Construction Authority, the National Environment Agency, the National Parks Board and the Singapore Police Force.