The National Wages Council (NWC) of Singapore has recommended a wage increase of 5.5% to 7.5% for lower-wage workers, equating to a minimum of S$85 to S$105, whichever is higher. This recommendation, applicable to employees earning a gross monthly wage of up to S$2,500, was announced on October 31, 2023, as part of the NWC’s 2023/2024 wage guidelines.

While the percentage increase remains consistent with the previous year, the minimum wage adjustment has risen slightly from S$80 to S$100. The NWC emphasized that employers in favorable economic positions should provide the higher end of the proposed wage range, while those facing uncertainties should aim for the lower to middle range. Employers who have struggled should consider increasing wages to the lower limit, with the potential for further raises if business conditions improve.

Desmond Tan, deputy secretary-general of the National Trades Union Congress (NTUC), acknowledged the challenging economic landscape, noting that inflation affects both employers and workers. The guidelines aim to balance the need for economic viability for employers while enhancing the livelihoods of workers.

The NWC also suggested that employers consider one-off special lump sum payments, particularly for lower to middle-income employees, to address the rising cost of living. These payments should be negotiated between management and unions for unionized members, with specific amounts left to the discretion of employers based on their financial capabilities.

Additionally, the NWC outlined Occupational Progressive Wage (OPW) requirements for July 1, 2024, to June 30, 2026. This set of requirements will affect approximately 64,000 lower-wage Singaporeans and permanent residents in specific occupations, including full-time administrators and drivers in companies employing foreign workers.

In light of these developments, the NWC underscored the importance of long-term productivity growth as essential for sustaining wage increases, urging small and medium-sized enterprises (SMEs) to adapt and transform their operations to meet the evolving economic landscape.