Singapore’s wage council begins talks on 2024-25 pay guidelines

The National Wages Council (NWC) of Singapore will convene on 29 August 2024 to initiate discussions on its annual guidelines for pay and employment issues. The council is currently inviting feedback from the public as it prepares to draft its recommendations, which are expected to be released by November.

These guidelines, covering the period from 1 December 2024 to 30 November 2025, will likely include recommended wage practices and suggested wage increases for various sectors, with a particular emphasis on lower-wage employees. Public feedback on wage-related issues can be submitted to the NWC Secretariat until 1 September 2024.

According to the Ministry of Manpower (MOM), the NWC will consider factors such as Singapore’s economic competitiveness, labour market conditions, inflation, productivity growth, and the global economic outlook during its deliberations. This year, the council will continue to provide guidance on progressive wage growth for lower-wage employees—a structured wage ladder linked to productivity and skills improvements, which currently applies to seven sectors and two occupations.

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The NWC’s meeting takes place against the backdrop of a mixed economic outlook for Singapore. While the country’s 2024 growth forecast is expected to be at the higher end of initial predictions, risks such as geopolitical conflicts persist. In Q2’2024, non-oil domestic exports fell by 6.4%, driven by volatile pharmaceutical demand, exacerbating the 3.4% decline seen in the previous quarter. The manufacturing sector also contracted, largely due to a sharp drop in pharmaceutical output.

Despite slowing wage growth and inflation, real total wages increased by 0.4% in both 2022 and 2023. As Singapore’s economy is anticipated to pick up gradually, employment and wages are expected to grow in tandem. However, MOM has cautioned that resident employment growth may become more muted due to a slowing workforce growth and low unemployment.

For the current year ending 30 November 2024, the NWC recommended that employers raise wages for lower-wage employees by 5.5% to 7.5%, with a minimum increase of S$85 (US$64.51) for employees that have performed well, reported The Straits Times.