Singapore to Raise Leave Entitlement for Outsourced PWM Workers From 2029
Singapore will increase the minimum annual leave entitlement for outsourced Progressive Wage Model workers from seven days to 10 days, in a move aimed at improving worker welfare, retention and employment stability.
| Written by Riya Malhotra
Singapore’s Ministry of Manpower has announced that outsourced workers covered by the Progressive Wage Model will have their minimum annual leave entitlement raised from seven days to 10 days. The change will be implemented in phases from 2029 onwards and will apply to outsourced workers across five PWM sectors: cleaning, security, landscape, lift and escalator, and waste management. Around 60 per cent of outsourced workers in these sectors are expected to benefit from the increase.
The move addresses a long-standing challenge faced by outsourced workers, whose leave entitlement may be reset when a new service provider takes over a contract. In many cases, workers continue in the same role and at the same worksite, but are rehired by the incoming service provider, causing their accumulated leave benefits to return to the statutory minimum.
Under Singapore’s Employment Act, employees are entitled to a minimum of seven days of annual leave in their first year of service. This increases by one day for each year of service with the employer, up to a maximum of 14 days. However, due to the structure of outsourced contracts, some PWM workers may not fully benefit from this progression despite serving continuously in the same job for several years.
The Ministry said the enhanced entitlement is intended to better reflect workers’ continuous years of service and protect their employment conditions even when their employers change. Workers who already receive leave benefits above the new minimum should continue to receive them in line with their existing employment terms and the Employment Act.
For HR leaders and employers, the change highlights the growing importance of fair employment practices across outsourced and essential service roles. As organisations increasingly rely on contracted service providers, workforce policies are being pushed to account not only for cost and continuity, but also for worker wellbeing, retention and long-term service quality.
The phased implementation from 2029 is designed to give employers and service-buyers time to adjust. MOM said the specific timeline will be discussed further by the respective sectoral tripartite clusters, allowing businesses to plan ahead, incorporate the change into contracts and manage operational and cost impact.
The policy also supports the broader professionalisation of outsourced PWM sectors, many of which provide essential services that keep workplaces, public spaces and communities running. By strengthening leave protection, Singapore is signalling that worker welfare and service continuity must move together.
For HR teams, the development is a reminder that employee experience cannot be limited to direct employees alone. Outsourced workers are often part of the daily workplace environment, and their working conditions increasingly shape broader conversations around dignity, fairness and responsible employment.
Source: CNA, Ministry of Manpower Singapore
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