Business · Singapore Bureau
Singapore employers urged to boost wages as economy thrives
Singapore's National Wage Council has called on employers to share economic gains with workers, recommending wage increases of 6 to 8 per cent for lower-paid staff. The guidance reflects the city-state's strong economic performance and aims to improve living standards for lower-income earners.
LSN Singapore ·
The National Wage Council has issued fresh wage guidance as Singapore's economy continues to outperform expectations, recommending that employers raise salaries for workers earning up to S$2,800 monthly. The proposed increases of 6 to 8 per cent would be calibrated to individual company performance, linking worker compensation to business success.
The council's recommendation seeks to ensure that economic gains are distributed more broadly across the workforce, particularly benefiting lower-wage earners who typically have fewer avenues for income growth. By tying wage increases to employer performance, the guidance provides flexibility for businesses while establishing a framework for fair remuneration.
The move comes as Singapore's robust economic expansion has generated stronger corporate profits and improved fiscal conditions. By encouraging wage growth in line with productivity and business performance, policymakers aim to support household incomes and maintain social stability amid the recovery.
The council's guidance carries significant weight in Singapore's tripartite industrial relations framework, which brings together government, employers, and unions to shape workplace conditions. While recommendations are not legally binding, they typically influence wage-setting decisions across both public and private sectors.