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SINGAPORE: Employers should take a “positive-leaning” approach to wage increases and share productivity gains with their workers, given Singapore’s strong economic performance, the National Wages Council (NWC) said on Monday (Oct 19).<\/p>\n
In its guidelines for December 2026 to November 2027, the council said firms that have performed well should reward employees through built-in wage increases and variable payments.<\/p>\n
Those that have not done well \u201cmay exercise wage restraint\u201d, with management leading by example, it said in a press release.<\/p>\n
Productivity and business growth have been uneven across sectors, the council said, so employers should have the flexibility to calibrate wage increases based on their own performance and prospects, balancing rewards for employees against competitiveness.<\/p>\n
\u201cTo ensure wages remain fair and competitive, employers should regularly review market wage benchmarks and adjust wage ranges accordingly where possible,\u201d the council said.<\/p>\n
NWC called on all employers to implement the flexible wage system in full, with both its annual and monthly variable components. The system lets firms cut costs rather than jobs in adverse conditions, and adjust wages quickly in an upturn to retain talent, it said.<\/p>\n
NWC said the national effort to uplift lower-wage workers must continue so that every worker benefits from Singapore\u2019s 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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
\u201cIf business prospects subsequently improve, employers should review wages and consider further wage increases for their lower-wage workers,\u201d it added.<\/p>\n
The government has accepted the council\u2019s recommendations.<\/p>\n
\u201cThe NWC\u2019s 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,\u201d the Ministry of Manpower (MOM) said in a press release.<\/p>\n
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.<\/p>\n
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.<\/p>\n<\/div>\n
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