Gov't supports wage increase, calls for adopting flexible wage system

MOM said that the government supports having differentiated wage guidelines.

The Singapore government has expressed support for the National Wages Council’s call on employers to increase employees’ wages, according to a statement by the Ministry of Manpower (MOM).

“In line with economic growth and the improvement in labour productivity, the government stands with tripartite partners to call on employers to reward employees with wage increases or variable payments that are fair and sustainable. This will help in addressing workers’ concerns about inflation and rising costs of living,” the statement read.

The call comes after an improvement of 1.5% in labour productivity, according to data from the MOM. Singapore’s economy is also expected to grow by 3% up to 4% for the whole year of 2022, according to the Ministry of Trade and Industry. 

In the statement, MOM said that the government supports having a differentiated wage guideline for employers, saying that they recognize that businesses have different performances and outlooks depending on the impact of the inflation.

In particular, the government calls for the implementation of the Flexible Wage System (FWS). The guidebook is available on the MoM website.

MOM shared that the Occupational Progressive Wages for Administrators and Drivers aims to bring 56,000 full-time lower-wage workers under the coverage of Progressive Wages from March 2023.

“We must press on with the national effort to uplift lower-wage workers so that our social compact remains strong and no worker is left behind as Singapore progresses. The NWC’s recommended wage growth for lower-wage workers balances business sustainability with meaningful wage increments for lower-wage workers and will bolster ongoing efforts to narrow the income gap,” the statement read.