According to the National salary Council (NWC) in its salary guidelines for December 2023 to November 2024, employers in Singapore should consider paying employees, particularly lower to middle-income employees, a one-time lump sum payment to assist them deal with growing costs.
During prior inflationary times in 2008 and 2011, the NWC, which included representatives from companies, labour, and the government, issued similar recommendations. Payment specifics for unionised organisations shall be set via mutual agreement between management and the union.
The NWC’s Chairman, Peter Seah, underlined the necessity of giving this financial assistance to lower-wage and middle-wage employees, while considering the various situations that companies confront.
The NWC also advocated for a 5.5% to 7.5% rise in gross monthly salaries for lower-wage employees, or a minimum pay increase of S$85 (US$62) to S$105 (US$77), whichever is greater. The rise should correspond to the organization’s performance and prospects.
The Ministry of Manpower (MOM) endorsed the NWC’s proposals, affirming performance and outlook distinction and advocating a one-time lump sum payment to employees.
According to Kenny Tan, Deputy Secretary for Workforce at MOM, 30% of firms have met or surpassed guidelines for improving lower-wage employees’ pay. The other 70% of companies, on the other hand, may not have boosted pay to the degree recommended by the NWC. He also pointed out that, while 89% of resident employees have either a monthly variable component or a yearly variable component in their salary, just 22% would have both in 2022, as required under the flexible wage system.
In collaboration with trilateral organisations, the government continues to encourage employers to focus on business and worker transformation.
The Singapore National Employers Federation’s President, Robert Yap, highlighted the NWC’s focus on fair and sustainable pay hikes while acknowledging the problems encountered by small and medium-sized firms (SMEs) due to the uncertain economic environment.
“My encouragement to SMEs is to look at transforming to look at being more relevant because if you stay like that, without any transformation, in the long term, it is going to be harder and harder to be able to sustain,” he added, as cited by CNA.
