The National Wages Council (NWC) has recommended a salary increase of 6% to 8%, or a minimum of $120, for workers earning up to $2,800 a month. The guidelines, released on October 19, introduce a new classification for employers based on their recent business performance, acknowledging the varied economic conditions faced by companies.
Under the new framework, employers whose businesses have performed well are advised to provide pay rises within the 6% to 8% range, or at least $135 to $170, whichever amount is higher. Companies that remain profitable but have experienced weaker results are encouraged to grant increases at the lower end of the recommended percentage or a minimum of $120. For employers facing unprofitable conditions, the NWC suggests a baseline increment of at least $120.
These differentiated recommendations mark a departure from previous years, reflecting challenges faced by some sectors amid a mixed economic outlook. The council urged employers to review wage adjustments regularly and consider additional raises if business conditions improve.
The guidelines were announced at a press conference held at the Ministry of Manpower (MOM) headquarters. MOM's permanent secretary, Stanley Loh, noted that only about 25% of employers followed the NWC's 2025 recommendation, which suggested a 5.5% to 7.5% raise for lower-wage workers. While around 60% of employers implemented wage increases last year, many did not fully meet the recommended levels.
Kuan Boon Wee, president of the Singapore National Employers Federation (SNEF), acknowledged the difficulties companies faced in meeting the previous wage increase proposals. He explained that the introduction of the new category aims to increase adoption rates of the guidelines. Kuan also highlighted that roughly 20% of Singapore’s resident workforce earns $2,800 or below monthly.
Beyond lower-wage workers, the NWC advised that firms with strong business results should consider built-in pay increments alongside variable payments such as bonuses. Conversely, companies experiencing poor performance may exercise wage restraint, with management expected to lead by example. Employers that are unprofitable but anticipate improved business prospects were encouraged to explore future variable payments linked to key business indicators.
The council’s assessment period spanned from March 2025 to March 2026, aligning with the Ministry of Manpower’s Survey on Annual Wage Changes. NTUC president K. Thanaletchimi emphasized the importance of transparency in financial reporting, noting that existing safeguards like the Industrial Relations Act promote trust between employers and workers.
The NWC’s guidelines serve as a framework to balance fair wage growth for employees with the financial realities faced by employers amid diverse economic conditions.