NWC recommends 5.5% to 7.5% pay hike for lower-wage workers

Latest guidelines also call for employers who have done well to reward staff

- Tay Hong Yi

Employers of lower-wage workers earning up to $2,500 in gross monthly wage should give salary increases of 5.5 per cent to 7.5 per cent to these workers, said the National Wages Council (NWC). Employers who have done well should offer these workers a raise of at least $100 to $120, even if it is higher than the percentage range stipulated, the NWC said on Oct 10 in its annual guidelines on pay and employment issues.

As for employers who have not done well, the council recommended providing lower-wage workers a built-in wage increase at the lower end of the stipulated percentage range, but that they should consider further wage increases if business prospects improve.

For workers at large, the council recommended that employers who have done well reward their employees with wage increases and variable payments such as bonuses or one-off payments tied to employers' performance and employees' contributions.

The guidelines, which were accepted by the Government but are not mandatory, cover the period from Dec 1, 2024, to Nov 30, 2025. They apply to all employees in unionised and non-unionised firms in both the public and private sectors.

The guidelines come amid an expected moderation in inflation, an improved economic outlook and sustained productivity growth over the longer term. However, there is still the risk of intensified geopolitical conflicts and financial conditions remaining tighter for longer, the council added.

Core inflation in Singapore eased to 3.1 per cent year on year for the first half of 2024, down from the 4.2 per cent recorded in 2023.