Singapore’s lower-wage workers should receive built-in pay rises of 6 to 8 per cent over the coming year, the National Wages Council (NWC) has recommended, in guidelines the Government accepted on Monday (19 October), AsiaOne reported.
The range is the highest the council has put forward since it began issuing quantitative wage guidelines for lower-wage workers in 2021. The recommendations cover the period from 1 December 2026 to 30 November 2027 and apply to employees earning a gross monthly wage of up to S$2,800.
Four tiers of employers
Under the guidelines, companies that have done well and have positive prospects should give increases at the higher end of the 6 to 8 per cent range, or at least S$135 to S$170, whichever is higher. Firms that have done well but face uncertain prospects are asked to aim for the middle of the range, with the same dollar floor.
Employers that have not done well but remain profitable should give rises at the lower end of the range, or at least S$120. For the first time, the council has added a fourth category: companies that have not done well and are unprofitable are asked to give a built-in increase of at least S$120.
The guidelines are not mandatory, but employers must still comply with Progressive Wage Model and Local Qualifying Salary requirements. The Government has also extended the Progressive Wage Credit Scheme, which co-funds wage increases, to the end of 2028, according to the National Trades Union Congress (NTUC).
Stronger economy
The recommendations follow a stronger-than-expected economic showing. Singapore’s economy grew 6 per cent year on year in the first three quarters of 2026, based on advance estimates, and the Government projects full-year growth of 4.5 to 5.5 per cent. Labour productivity rose 3.8 per cent in the first half, while overall unit labour costs fell 0.8 per cent.
Growth has been uneven, however. AI-related global demand has lifted electronics and precision engineering, while food and beverage services have been weaker. Singapore National Employers Federation president Kuah Boon Wee noted that some employers had struggled to afford the increases recommended in previous years.
Unions welcome the move
NTUC backed the guidelines and urged employers to make sure all workers, including professionals, managers and executives, share in the gains through built-in increases and variable payments. “We are heartened by our tripartite partners’ commitment to uplift lower-wage workers,” said NTUC President K. Thanaletchimi.
The labour movement also called for protected training time so workers can upgrade their skills as AI reshapes jobs, pointing to support such as Company Training Committee grants and its AI-Ready SG initiative.
What’s next
Employers have until the guidelines take effect on 1 December to plan pay adjustments. Unions are expected to use the recommendations as a benchmark in wage negotiations, with NTUC Assistant Secretary-General Melvin Yong noting that unionised companies tend to have higher adoption rates.
