NWC pushes for 6% to 8% pay raise for lower-wage workers

The council recommended at least a $120 hike for unprofitable firms.

Employees earning a gross monthly wage of up to $2,800 should receive a 6% to 8% increase based on their company’s financial situation, the National Wages Council (NWC) said in its 2026-2027 guidelines.

The council encouraged employers to view salary raises positively, following Singapore’s estimated economic growth of 5.4% on a year-on-year basis for the third quarter.

NWC said employers with good results should give lower-wage workers a pay rise at the higher end of 6% to 8%, or at least $135 to $170, whichever is higher.

For firms that have done well but face uncertainties, the wage increase is recommended to be in the middle range, or at least a $135 to $170 hike, whichever is higher.

Employers that have not done well but remain profitable are recommended to increase salary at the lower end of the range, or at least $120,

A new category was established for firms that have not done well and are unprofitable, recommending a wage increase of at least $120.

The update reflects the uneven growth across key lower-wage worker hiring sectors, NWC said.

The guidelines add that if business prospects improve, employers should consider further wage increases for lower-wage workers.

NWC also recommended that companies redesign jobs in tandem with artificial intelligence adoption and reskill and upskill their employees for shifting job functions.