“Employers should reward employees with ‘fair and sustainable’ wage increases: National Wages Council. This takes into account the sustained productivity growth over the long term, as well as the improved economic outlook and expected moderation in inflation in 2024,” the council stated.
According to the National Wages Council’s guidelines for December 2024 to November 2025, employers who have performed well are advised to provide built-in wage increases and variable payments. However, for those who have not done well, the recommendation is to exercise wage restraint, with management setting an example.
The president of the National Trade Union Congress (NTUC), K Thanaletchimi, emphasized the importance of rewarding employees when companies perform well, stating, “If companies do well, they are expected to reward their workers for their productivity.” This approach not only benefits employees but also helps employers retain their workforce.
For lower-wage workers, the NWC recommended a 5.5% to 7.5% increase in gross monthly wages, with a minimum pay rise of at least S$100 to S$120. Employers with positive business outlooks are encouraged to provide higher increases, while those with uncertain prospects are advised to raise salaries towards the lower to middle bounds of the range.
In response to the guidelines, the Ministry of Manpower (MOM) endorsed the call for fair and sustainable wage increases or variable payments, stating, “The government stands with tripartite partners to call on employers to reward employees with wage increases or variable payments that are fair and sustainable.”
It was noted that most firms adopted the general guidelines from the previous year, with a significant percentage providing good wage increases and variable compensation. The Singapore National Employers Federation (SNEF) expressed its support for the guidelines, highlighting the importance of aligning wage growth with productivity gains to avoid potential negative implications on businesses and jobs.
As workers face challenges due to the rising cost of living and higher inflation rates, the NTUC encouraged employers to be more generous with wage increments or bonuses. The inclusion of broad middle-income workers in the NWC guidelines was also acknowledged as a positive step.
Ultimately, the National Wages Council’s call for fair and sustainable wage increases reflects its commitment to addressing economic conditions and ensuring that both employees and employers benefit from a balanced approach to remuneration and reward systems.
