Progressive Wage Model
Definition. The Progressive Wage Model is a Singapore policy that sets out a structure of rising wages tied to improvements in skills, training, and productivity for lower wage workers in specified sectors. It aims to raise the incomes of low wage workers while preserving their employability.
Unlike a flat minimum wage, it links pay increases to upgrading and productivity gains, and supports the goal of inclusive growth by lifting the earnings of workers at the bottom of the income distribution.
This term belongs to Inclusive and Sustainable Growth in Singapore in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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