Here’s what employers should know about the Wage Council’s 2025 guidelines

The wage council proposed salary hikes for workers earning up to $2,500, amongst others.

Employers have been urged to raise the salaries of lower-income workers earning up to $2,500 by 5.5% to 7.5%, or at least $100 to $120.

The salary increase was amongst the 2025/2025 National Wages Council (NWC) recommendations.

The National Trades Union Congress (NTUC), and the Singapore National Employers Federation (SNEF) have backed the recommendations.

Employers, particularly those experiencing growth, are urged to offer a higher percentage increase, between 5.5% and 7.5% if it exceeds the proposed $100 to $120.

Those who have not performed well in business may apply a lower percentage increase but can consider additional increments if their situation improves. 

Companies facing uncertainty should offer a lower-to-middle percentage increase as long as it exceeds the recommended monetary values. 

The guidelines also suggest that employers outsourcing services adopt deliverable-based contracting in alignment with the NTUC’s Progressive Wage Model (PWM) and wage guidelines.

When making salary changes, NWC encourages employees to consider the higher CPF monthly salary ceiling and senior worker CPF contributions starting in January 2025.

Beyond salaries, the NWC called for continued collaboration between employers and employees on job training and transformation, supported by the government, unions, and trade associations. 

Employers are encouraged to redesign jobs to enhance productivity using NTUC Company Training Committees. 

The NWC further recommends employers tap into Government training subsidies, career conversion programmes, and the new Overseas Market Immersion Programme to upskill workers for future roles.