Singapore's National Wages Council Recommends 6-8% Pay Raise for Lower-Wage Workers

SINGAPORE – The National Wages Council (NWC) has recommended a salary increase of 6% to 8% for lower-wage workers earning up to S$2,800 (approximately USD 2,000) per month, marking the highest proposed range since the introduction of quantitative guidelines in 2021. This recommendation, announced on October 19, 2026, reflects the council's recognition of Singapore's stronger-than-expected economic performance while acknowledging ongoing uncertainties in various sectors.

The guidelines, which will take effect from December 1, 2026, to November 30, 2027, suggest that employers with good business performance should aim for increases at the higher end of the range, or at least S$135 to S$170 (USD 100 to USD 125), whichever is greater. For firms that are profitable but have uncertain prospects, the NWC encourages increases around the mid-range of 6% to 8%. Employers that have not performed well but remain profitable are advised to provide a minimum increase of S$120 (USD 90), while a new category has been introduced for unprofitable firms, which should still offer a pay bump of at least S$120.

At a press conference, NWC chairman Hsieh Fu Hua emphasized the need for flexibility in wage adjustments, stating, "The guidelines recognize that employers have different capacities to raise wages for their lower-wage workers, depending on their business performance and outlook." This flexibility aims to encourage more employers to adopt the guidelines, especially those facing economic challenges.

“The guidelines recognize that employers have different capacities to raise wages for their lower-wage workers, depending on their business performance and outlook.”Hsieh Fu Hua, NWC Chairman

According to the Ministry of Manpower (MOM), about 60% of employers provided wage increases last year, although many did not meet the levels proposed by the NWC. The NWC's recommendations come as the government projects Singapore's economy to grow between 4.5% and 5.5% for the full year, driven by sectors benefiting from artificial intelligence-related demand.

NTUC President K. Thanaletchimi welcomed the guidelines, urging employers who have benefited from growth to do more for lower-wage workers. She stated, "We are heartened by our tripartite partners’ commitment to uplift lower-wage workers and the NWC recommendation for employers that have done well to do more for lower-wage workers through higher wage increments above the recommended guidelines."

“We are heartened by our tripartite partners’ commitment to uplift lower-wage workers and the NWC recommendation for employers that have done well to do more for lower-wage workers.”K. Thanaletchimi, NTUC President

However, challenges remain, particularly in sectors like food and beverage, which have been struggling with cost pressures. Melissa Ng, executive secretary of the Food, Drinks and Allied Workers Union, noted that while the stronger wage recommendations are welcome, the sector's workers have contributed significantly to its resilience.

The NWC also urged employers to implement a flexible wage system (FWS) to maintain wage flexibility during adverse conditions, allowing businesses to adjust salaries instead of resorting to layoffs. The council highlighted the importance of upskilling and adapting to an AI-enabled economy, recommending that employers support employee training initiatives.

As the NWC's guidelines are not compulsory, the government will monitor compliance and verify employers' claims regarding profitability to prevent misuse of the new categories. The introduction of these guidelines reflects a broader commitment to improving the livelihoods of lower-wage workers while balancing the realities faced by employers in a fluctuating economic landscape.