National Wages Council recommends 6% to 8% pay rise for lower-wage workers
A new category has been introduced to support employers who haven't done well and are unprofitable.
The National Wages Council (NWC) has recommended a pay increase of 6% to 8%, or a minimum of $120, for lower-wage workers earning up to $2,800 a month. Employers with successful businesses should provide at least a $135 to $170 pay rise, while those in less profitable or unprofitable situations should still offer a minimum of $120.
This new category was added in response to economic challenges faced by employers. The Ministry of Manpower's permanent secretary, Stanley Loh, reported that around 25% of employers adopted last year's NWC guidelines, but approximately 60% provided wage increases, albeit not up to the proposed levels. Kuah Boon Wee, president of the Singapore National Employers Federation, explained that many companies found it difficult to implement the 5.5% to 7.5% increase from the previous year.
NTUC president, K Thanaletchimi, emphasized the importance of transparency in financial performance to build trust between employers and employees. The guidelines are applicable to both public and private sector employees and will be enforced from December 1, 2026, to November 30, 2027. The NWC sought a "positive-leaning approach" to wage increases, acknowledging the inconsistent performance in various sectors.
They also emphasized the need for employers to adopt the Flexible Wage System (FWS) and invest in employee training to prepare for an AI-enabled economy.
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