Employers, it’s time to reward and recognise your employees

In news that should be music to the ears of employees, Singapore’s National Wages Council (NWC) has urged employers to reward employees with “fair and sustainable” wage increases.

Employers who have done well should reward their employees with built-in wage increases and variable payments, while those who have not done well may exercise wage restraint, with management leading by example, said NWC.

In its wage guidelines for December 2024 to November 2025, NWC also stressed that this should consider the sustained productivity growth over the long term, as well as the improved economic outlook and expected moderation in inflation in 2024.

Specifically for lower-wage employees, NWC recommended a 5.5 to 7.5% increase in gross monthly wages, or a pay hike of at least S$100 (US$76.42) to S$120 (US$9190), whichever is higher, reported CNA.

Lower-wage employees are defined as those who earn a gross monthly wage of up to S$2,500 (US$1,914) and correspond approximately to the 20th percentile wage level of full-time employed residents.

Employers who have done well and have positive business prospects are encouraged to provide an increase at the higher end of the range, while those who have done well but face uncertain prospects should raise salaries by a percentage or amount in the lower to middle bound of the range.

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Employers can also consider a flexible wage system, which comprises an annual variable component and monthly variable component, and which will enable employers to make quick adjustments during downturns to retain jobs and during upturns to retain talent. added NWC.

Endorsing NWC’s wage guidelines for 2025, the Ministry of Manpower (MOM) said, “The government stands with tripartite partners to call on employers to reward employees with wage increases or variable payments that are fair and sustainable.”