Employers urged to share gains with workers as Singapore’s economy outperforms: National Wage Council

LOWER-WAGE WORKERS

NWC said the national effort to uplift lower-wage workers must continue so that every worker benefits from Singapore’s growth. To narrow the gap with the median wage worker over this decade, their wages must consistently grow faster than the median wage, it said.

Employers that have done well have greater scope to share their gains, the council said, recommending a higher percentage range of increases and higher minimum dollar amounts.

For workers earning a gross monthly wage up to S$2,800, employers that have done well and have positive business prospects should give a built-in wage increase at the higher end of 6 to 8 per cent of gross monthly wage, or at least S$135 to S$170, whichever is higher.

Employers that have done well but face uncertain prospects should give an increase around the middle of that range, or at least S$135 to S$170, whichever is higher.

Employers that have not done well but remain profitable should give an increase at the lower end of the range, or at least S$120, whichever is higher.

For the first time, the guidelines also cover firms that did not do well and are unprofitable. They should give a built-in increase of at least S$120, the council said.

“If business prospects subsequently improve, employers should review wages and consider further wage increases for their lower-wage workers,” it added.

The government has accepted the council’s recommendations.

“The NWC’s recommendations for lower-wage workers provide meaningful wage uplift for lower-wage workers, while allowing for flexibility for employers based on economic and business conditions,” the Ministry of Manpower (MOM) said in a press release.

At a press conference on Monday, the ministry’s permanent secretary Stanley Loh said adoption of the guidelines last year was a little over 25 per cent as companies adjusted to expanded coverage and higher recommendations. The adoption rate surpassed 70 per cent at its peak, he said.

NWC chairman Hsieh Fu Hua emphasised that the figure did not mean the remaining 75 per cent of employers did not bother to do anything for lower-wage workers. They failed to provide wage increments in line with the recommendation, he said, which is why the new category was introduced in the hope of raising adoption.