SINGAPORE: Employers should reward employees with fair and sustainable wage increases, said the National Wages Council ( NWC ) on Thursday ( Oct 10 ).  ,
This account is taken into account, it added, along with the long-term supported productivity growth, the improved economic outlook, and the anticipated moderate inflation in 2024.  ,
In its salary instructions for December 2024 to November 2025, the committee recommended that employers who have performed well give their employees changing pay increases and pay increases.  ,
Those who have not done properly may practice pay caution, with management leading by example, it added.  ,
When asked why NWC did not call for a one-off payment like it did in 2023, president of the National Trade Union Congress (NTUC), K Thanaletchimi , noted that” there is an purpose” in the rules for companies who have done well to provide a changing component, which includes prizes or other types of one-off bills.  ,
When businesses do nicely, they are expected to encourage their employees for their performance, NWC’s president Peter Seah added.  ,
In change, this also helps companies to maintain staff, he said.  ,
INCREASES FOR LOWER-WAGE WORKERS ,
The NWC also recommended a 5.5 per cent to 7.5 per cent increase in gross monthly wages for lower-wage workers, or a pay bump of at least S$ 100 ( US$ 76.42 ) to S$ 120, whichever is higher.
Employers who have performed well and have favorable business prospects if offer raises in the upper middle of the range, while those who have performed well but have questionable prospects should increase salaries.
Pay increases may be made at the lowest end of the range for businesses that have performed poorly. ” If company prospects subsequently increase, employers may consider more income increases”, said NWC.  ,
Lower-wage workers are those who make up to S$ 2, 500 in total monthly wages. That is roughly the income level of full-time residents at the 20th percentile.
According to the council, employers should fully implement the accommodating wage system, which includes an annual and quarterly adjustable component.  ,
Employers can make quick changes during downturns to keep work and during upturns to keep skill, according to the flexible income system, which it added.  ,
The Ministry of Manpower ( MOM) stated in a separate press release on Thursday that the government accepts NWC’s guidelines for the upcoming year.
The government and its bilateral partners are pressing employers to offer good and sustainable wage increases or variable payments, according to MOM.  ,
The government observed various trends- outward-oriented sectors such as information and communications, as well as developing show powerful productivity growth, said , continuous secretary Ng Chee Khern.  ,
He said that internally focused industries like food and beverage services and administrative and support solutions are “lagging” and that these industries may continue to advance in their transition.  ,
According to Mr. Ng, the majority of companies that followed the standard guidelines last year gave good pay increases and provided annual variable compensation.  ,
Among those who did also but had questionable business leads, 73.8 per cent provided annual varying payment last year, he added.
The Singapore National Employers Federation ( SNEF ) strongly endorses NWC’s guidelines, said its president Tan Hee Teck.
” Income growth may be accompanied by efficiency increases. It is crucial that salary adjustments take into account these variations because we have disparities in productivity across all sectors,” he continued.  ,
” If not aligned, wage growth can lead to rising costs that can cripple businesses and jeopardise jobs” . ,
Because of key cpi being “certainly on the higher side,” said Ms. Thanaletchimi, workers are having more issues with the higher cost of living.  ,
We” sincerely hope that the NWC suggestions take into account the situation of the workers and make sure that the employers are more generous with their raises or bonuses,” she continued.  ,
NTUC is likewise heartened by the addition of large middle-income employees in the NWC instructions, said Ms Thanaletchmi.  ,