The National Wages Council (NWC) has released its wage guidelines for the period from December 1, 2026, to November 30, 2027, reflecting Singapore’s robust economic performance amid ongoing uncertainties. These guidelines pertain to employees across unionised and non-unionised firms in both the public and private sectors. While endorsed by the government, the recommendations are not mandatory.
Formulated through consultations held from August to October, the council—comprising representatives from the government, employers, and the labour movement—adopted a positive-learning approach to recommended wage increases. In its statement, the NWC highlighted the stronger-than-expected performance of Singapore’s economy while acknowledging continued volatility in the outlook.
Council chairman Hsieh Fu Hua pointed out that business outcomes and productivity growth have varied across sectors, underscoring the need for flexibility in adjusting wage increments according to specific industry circumstances. The council noted that GDP growth in the coming months will be supported primarily by outward-oriented industries and sectors integrated with the artificial intelligence (AI) technology cycle, despite persistent challenges in areas affected by Middle East supply disruptions.
Food and beverage was cited as an example of a struggling sector, with NWC deputy secretary-general Kuah Thiam Hock emphasizing the importance of balancing wage adjustments given the diverse conditions faced by employers.
The council also urged full implementation of the flexible wage system (FWS), which includes both annual and monthly variable wage components. This mechanism enables employers to adjust costs during challenging business periods, helping sustain operations and preserve jobs.
Recognising the transformative impact of AI on the economy, the guidelines advocate for both employers and employees to develop new capabilities to thrive in an AI-enabled environment. The council described AI as a key driver of productivity gains, new value creation, and enhanced competitiveness for Singapore.
However, data from the Ministry of Manpower’s employer-supported training survey indicated a decline in structured employee training participation in 2025. The proportion of employers providing such training dropped from 66.4% in 2024 to 64.2%, while employee participation fell from 52.6% to 44.8% over the same period.
Ministry of Manpower’s Loh Lin Fong reiterated the government’s backing of the NWC’s call for proactive investment in enterprise transformation and upskilling.
The guidelines encourage employers to prepare workers for emerging roles, such as AI ethics officers and green technology specialists, by supporting training programs and utilising available subsidies. Companies are also advised to adopt AI responsibly and redesign jobs to align with business transformation, leveraging assistance like NTUC’s job placement and training initiatives.
Additionally, the council recommended that human resources professionals enhance their competencies by obtaining certification from the Institute for Human Resource Professionals (IHRP) to better support workforce transitions.
For employees, the NWC urged the development of AI literacy, digital skills, judgment, and human-centric capabilities to become “AI bilingual,” improving their employability across various industries.
NTUC secretary-general Thanaletchimi stressed the importance of employers providing workers with protected time for skill-building, particularly in the AI domain, enabling them to take on more advanced roles in the evolving labour market.