Singapore is one of the few developed economies with no statutory minimum wage covering all workers. Instead, the city-state runs a sector-based Progressive Wage Model (PWM), plus wage thresholds tied to foreign-manpower policy. Set against Vietnam — where the minimum wage is a hard statutory figure in a decree — investors face two almost opposite approaches to the labour market.
Singapore: no “common floor”, only sectoral floors
Singapore law sets no national minimum wage. Wages are in principle set by market supply and demand. For citizen and permanent resident (PR) workers in lower-paying sectors, however, the Government applies the PWM: mandatory sector-specific wage ladders tied to skill levels and career progression.
Covered sectors include cleaning, security, landscaping, retail, food services, lift and escalator maintenance, waste management, administrators and drivers. Sectoral floors are published on schedules, usually revised annually; the 2025–2026 frame shows, for example, cleaning from SGD 1,910, security from SGD 2,475 and retail from SGD 2,305 (entry-level rungs).
Alongside the PWM are two thresholds foreign investors often mistake for a “minimum wage”: the Local Qualifying Salary (LQS) — SGD 1,800 per month from 1 July 2026 (previously SGD 1,600) — the minimum a firm must pay local staff for them to count toward its foreign-worker quota; and the Employment Pass threshold — SGD 5,600 per month for general sectors from January 2025 (SGD 6,200 for financial services). Neither is a minimum wage; both are manpower-policy conditions.
Vietnam: the “not lower than” principle and four regions
In complete contrast, Vietnamese law sets a hard floor. Article 90 of the Labour Code 2019 provides that employee wages must not be lower than the minimum wage; any agreement paying less is void to the extent of the shortfall. This is an absolute compliance duty with no hardship exemption for struggling firms.
The current floor under Decree 293/2025/ND-CP (effective 1 January 2026): Region I VND 5,310,000/month, Region II VND 4,730,000, Region III VND 4,140,000, Region IV VND 3,700,000, with corresponding hourly rates (VND 25,500 down to 17,800). Which rate applies depends on the locality where the employer operates: a firm with branches in several regions applies each branch’s local rate; an industrial park spanning areas with different rates applies the highest.
Adjustment mechanism: the National Wage Council (Article 92, Labour Code 2019) recommends, the Government issues a decree — in practice almost annually, with 2025 the exception (no change) and a catch-up 2026 hike averaging +7.2%.
Side by side: what surprises investors?
Philosophy: Singapore trusts the market, intervening only with sectoral floors tied to skills upgrading (the PWM mandates training, not just a number); Vietnam sets a universal statutory floor for every employee under a labour contract. Firms moving from Vietnam to Singapore are often “shocked” to find no single floor figure for their cost model.
Coverage: Singapore’s PWM protects only citizens and PRs — Work Permit and S Pass holders are outside it. Vietnam’s minimum wage, by contrast, covers every employee working under a labour contract, regardless of nationality.
Predictability: PWM adjustments follow published sectoral roadmaps (usually on each sector’s own annual cycle), while Vietnam revises by year-end decree for the following year. Both demand their own tracking calendars, with completely different information “drop points”.
Real cost: despite no common floor, Singapore’s wage level remains among Southeast Asia’s highest — the SGD 5,600 EP threshold signals market expectations. Vietnam’s Region I floor (VND 5.31 million) is a small fraction of that. The investor’s question is not “which floor is lower” but “total employment cost per unit of output” — where productivity, automation and workforce structure differ fundamentally.
Practical recommendations
When modelling Singapore costs, do not search for “the Singapore minimum wage” — instead determine: (1) whether your sector falls under the PWM, (2) your local-versus-foreign workforce mix (affecting LQS and quotas), and (3) the work-pass thresholds for specialist roles. For Vietnam, pin down the correct region for each branch or industrial park before locking the budget. Singapore-law details should be reviewed by local counsel, as the PWM and related thresholds update on separate sectoral calendars.
Frequently asked questions
Does Singapore have a minimum wage?
No statutory minimum wage applies generally. Singapore uses the Progressive Wage Model (PWM) — mandatory sector-specific wage ladders for lower-paying sectors, covering only citizens and permanent residents and tied to skills and training.
Is the Local Qualifying Salary (LQS) a minimum wage?
No. The LQS (SGD 1,800 per month from 1 July 2026) is the threshold for local employees to count toward a firm’s foreign-worker quota. It is a manpower-policy condition, not a universal wage floor.
Does the PWM cover foreign workers?
No. The PWM applies only to Singapore citizens and permanent residents in designated sectors. Work Permit and S Pass holders fall outside it, though firms must still meet the relevant work-pass thresholds.
Can a Vietnamese firm pay below the minimum wage when in difficulty?
No. Article 90 of the Labour Code 2019 is an absolute duty — any agreement paying below the minimum wage is void to the extent of the shortfall, with no hardship exemption.
Which rate applies to an industrial park spanning two wage regions?
The highest one. Decree 293/2025/ND-CP provides that an employer operating in an industrial park, export processing zone or high-tech park spanning areas with different minimum wages applies the rate of the area with the highest minimum wage.
For detailed advice on labour costs and compliance in Singapore or Vietnam, companies may contact FLAT Law Firm.
This article has been quality-reviewed by the FLAW AI Legal Council