On October 10, the National Wages Council (NWC) called on employers to assist in the implementation of fair and sustainable wage hikes to recognize ongoing productivity growth and improved economic conditions. Between December 2024 and November 2025, the NWC recommends that companies provide gradual salary hikes and bonuses to their employees who have excelled. During periods of instability, companies should enforce limits on salaries, with leaders setting the standard.
According to the report, the NWC emphasizes the importance of offering employees generous rewards for their performance during periods of positive company performance, which also aids in retaining them in the long term. In addition, the council has proposed increasing the monthly salaries of low-income workers by 5.5% to 7.5% in order to improve their financial security. Lower-wage workers who earn up to S$2,500 are advised to receive a salary raise ranging from S$100 to S$120.
The NWC is recommending the complete adoption of the flexible wage system to allow for simple wage adjustments in response to economic fluctuations. The Ministry of Manpower, the Singapore National Employers Federation, and other tripartite partners have agreed to the NWC’s recommendations to promote fair and sustainable wage adjustments.
The government has accepted the NWC’s recommendations for the upcoming year, highlighting the significance of aligning salary raises with improvements in productivity and sector-related elements. Employers are urged to adopt a fair pay system that can help both employees and companies, establishing a conducive work environment for everyone.
K Thanaletchimi, NTUC President, highlighted that workers are facing more difficulties because of the higher cost of living caused by elevated core inflation. She voiced her wish for the NWC guidelines to focus on employees’ challenges and prompt employers to be more generous with salary increases and bonuses.