Singapore wage council recommends increment for low income earners

New guidelines from the National Wages Council (NWC) recommend giving low-wage workers earning up to SGD 2,200 monthly a salary increment of between 5.5% and 7.5%.

“NWC recommends employers provide a built-in wage increase of 5.5% to 7.5% of gross wages, or at least SGD 80 to SGD 100, whichever is higher, to all employees earning a gross monthly wage of about SGD 2,200,” NWC chairman Peter Seah said.

The new SGD 2,200 threshold corresponds with the lowest 20% of wage earners in terms of salary level. National Trades Union Congress president Mary Liew said that this is an increase from the wage threshold of SGD 2,000.

“This is the first time that the wage increase guideline for the lower-wage workers has crossed the three-digit mark, I think that is significant for us as well,” Liew said.

Meanwhile, Ministry of Manpower secretary Ng Chee Khem said the government has accepted NWC’s guidelines.

“The focus last year was on encouraging employers to restore wages, roll back cost-saving measures and adopt the flexible wage system.”

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Chief of Staff Asia