New Guidelines Focus on Raising Wages While Addressing Economic Challenges
In response to current economic conditions, the National Wages Council (NWC) has proposed a wage increase of 5.5% to 7.5% for lower-wage workers in Singapore. This recommendation applies to employees earning a gross monthly wage of up to S$2,500, which corresponds to the 20th percentile wage level of the workforce.
The proposed pay rise, ranging from S$85 to S$105, is in line with last year’s recommendations, though the minimum increase has slightly risen. Employers who are performing well should aim for the upper end of the wage range, while those facing more uncertain prospects can provide increases in the lower to middle range. Companies experiencing financial difficulty are encouraged to offer lower increases initially, with the potential for higher adjustments as business conditions improve.
The NWC emphasized that this wage increase is intended to address both inflationary pressures on workers and help employers manage their costs. At the same time, the guidelines aim to uplift the standard of living for lower-wage earners and reduce income disparity. The NWC also recommended that employers consider giving a one-off special lump sum payment to employees, especially for lower to middle-income groups, to further support them in these challenging times.
