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National Wages Council recommends 6% to 8% pay rise for lower-wage workers

Singapore NWC recommends 6% to 8% pay rise for lower-wage workers and urges employers to build AI skills Read more at straitstimes.com.

The Straits TimesSharon Salim查看原文 ↗
(From left) NTUC assistant secretary-general Melvin Yong, NTUC president K Thanaletchimi, National Wages Council chairman Hsieh Fu Hua, MOM permanent secretary Stanley Loh and SNEF president Kuah Boon Wee at a press conference on Oct 19.
(From left) NTUC assistant secretary-general Melvin Yong, NTUC president K Thanaletchimi, National Wages Council chairman Hsieh Fu Hua, MOM permanent secretary Stanley Loh and SNEF president Kuah Boon Wee at a press conference on Oct 19.

(From left) NTUC assistant secretary-general Melvin Yong, NTUC president K. Thanaletchimi, National Wages Council chairman Hsieh Fu Hua, MOM permanent secretary Stanley Loh and SNEF president Kuah Boon Wee at a press conference on Oct 19.

ST PHOTO: MARK CHEONG

Published Oct 19, 2026, 02:00 PM

Updated Oct 19, 2026, 07:03 PM

National Wages Council recommends 6% to 8% pay rises for lower-wage workers earning up to $2,800 a month.

The council recommends a pay bump of $135 to $170 for stronger firms and at least $120 for those who have not done well.

The council also called for more AI-related training and job redesign, and for employers to provide employees with protected time for training and upskilling.

SINGAPORE – Lower-wage workers earning up to $2,800 a month should be given a salary increase of 6% to 8%, or at least $120, said the National Wages Council (NWC).

Employers whose businesses have done well should give their employees a pay rise within the 6% to 8% range or at least $135 to $170, whichever is higher, the council said on Oct 19, in its annual guidelines on pay and employment issues.

Businesses that have not done well but are profitable should give their lower-wage workers a built-in wage increase at the lower end of the 6% to 8% range or at least $120, whichever is higher.

Those that have not done well and are unprofitable should still provide a salary bump of at least $120. This is a new category in the council’s guidelines, created in recognition of the economic difficulties faced by employers.

Bosses should review salaries and consider further pay increases for lower-wage workers if business prospects improve.

At a press conference held at the Ministry of Manpower (MOM) office on Oct 19, the ministry’s permanent secretary Stanley Loh said about a quarter of employers adopted the guidelines NWC proposed in 2025 , which called for a 5.5% to 7.5% pay rise for lower-wage workers .

However, about 60% of employers provided wage increases in 2025, but not up to the levels in the proposed NWC guidelines.

Singapore National Employers Federation (SNEF) president Kuah Boon Wee said many companies expressed difficulty in giving employees the proposed 5.5% to 7.5% increment in 2025.

“That’s why we came up with a category that hopefully will allow the percentage of adoption to go up,” Kuah said, adding about 20% of the resident workforce are earning a monthly salary of $2,800 and below.

More broadly, for all workers, NWC said companies that have done well should reward their employees with built-in wage increases and variable payments such as one-off payments.

Those that have not done well, however, can “exercise wage restraint, with management leading by example”.

Employers that have not done well but face positive business prospects should also consider setting out future variable payments linked to appropriate business indicators, said NWC.

The business performance period considered by NWC was March 2025 to March 2026, in line with the reference period for the Survey on Annual Wage Changes by MOM’s Manpower Research and Statistics Department.

NTUC president K. Thanaletchimi said there are safety measures in place, such as the Industrial Relations Act, to ensure employers are transparent with their financial performance.

“When you are transparent, you build trust with your workers,” she said.

The guidelines, for the period from Dec 1, 2026, to Nov 30, 2027, apply to all employees in unionised and non-unionised firms in both public and private sectors.

They were accepted by the Government but are not compulsory.

The council, which consists of Government, employer and labour movement representatives, convened from August to October 2026 to formulate the guidelines.

“The 2026/2027 guidelines adopt a positive-leaning posture for recommended wage increases, recognising both the stronger-than-expected overall performance of the Singapore economy and continued uncertainty in the economic outlook,” NWC said in its statement.

Council chairman Hsieh Fu Hua noted that business performance and productivity growth have not been consistent across sectors, and said employers should have the flexibility to calibrate wage increases to their specific business performance and prospects.

Gross domestic product growth for the rest of the year will be supported by outward-oriented segments and sectors that are plugged into the artificial intelligence (AI) technology cycle despite continued weakness in sectors affected by Middle East supply disruptions, said the council.

Kuah added: “Notably, the food and beverage is a sector that has been struggling. That’s why for this year, achieving a balance is important because no employers are the same.”

Meanwhile, the council urged all employers to implement the Flexible Wage System (FWS) in full, which comprises both the annual variable component and the monthly variable component, if they have not done so.

The FWS enables employers to maintain wage flexibility during adverse business conditions to sustain their businesses by cutting costs rather than jobs, NWC added.

Building AI-related capabilities

The guidelines also proposed that bosses and workers build the capabilities needed to thrive in an AI-enabled economy .

“AI presents significant opportunities to raise productivity, create new sources of value and strengthen Singapore’s competitiveness,” said NWC in its press statement.

According to data from an employer supported training survey by MOM, the proportion of employers who provided structured training to employees fell to 64% in 2025, down from 66.4% in 2024. The proportion of employees receiving structured training also dipped from 52.6% in 2024 to 48.1% in 2025.

MOM’s Loh emphasised the Government’s support for NWC’s call for employers to take a proactive approach to invest in enterprise transformation, and for employees to update their skills.

For employers, the council recommended helping employees prepare for future job roles such as an AI ethics officer or green tech specialist, and equip them with new skills as industries evolve.

This includes supporting employee-initiated training and tapping subsidies provided for Skills and Workforce Development Agency-funded training programmes.

Employers should also adopt AI effectively and responsibly, and redesign jobs in tandem with business transformation to increase productivity. Employers can do so by leveraging transformation support such as through NTUC’s job placement support and training programmes.

Another proposal was encouraging human resources (HR) practitioners to upskill and obtain the Institute for Human Resource Professionals (IHRP) Certification , strengthening capabilities to support work transformation.

For workers, they should strengthen their AI literacy alongside domain expertise, judgment and human skills to become “AI bilingual” individuals . These AI-relevant skills will enable them to access opportunities across firms and sectors.

NTUC’s Thanaletchimi urged employers to provide workers with protected time to build relevant skills and take on a higher-value added job, especially in the area of AI.

“In practical terms, this means planning workloads and work arrangements so that employees can attend relevant training without having to compromise their work responsibilities or solely rely on their personal time.”

Sharon Salim is a business correspondent at The Straits Times, with a focus on jobs, workplace culture and trends.

Ministry of Manpower

AI/artificial intelligence

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