Singapore’s National Wage Council (NWC) has released its latest wage guidelines – with recommendations that the Government has fully accepted.
The current guidelines arrive at a time of global uncertainty, rising business costs, and rapid technological upheaval. Yet, the message is clear: fair wage growth, continued support for lower-wage workers (LWWs), and sustained investment in skills remain essential to strengthening Singapore’s economic resilience.
Here are the 3 recommendations you need to know.
Read Also: Guide To Understanding Singapore’s National Wages Council – And How They Affect Salaries
#1 Wage Increases Should Be Fair
The NWC reiterates that wage growth must move in line with productivity growth. Employers who have enjoyed strong business performance should reward workers with fair and sustainable raises – for both built-in increments and variable payments such as bonuses.
Though, the NWC also acknowledges the challenging and uncertain environment, with global tariff tensions, rising cost pressures, and uncertainty across markets.
This is why having a Flexible Wage System (FWS) is crucial. Employers who have yet to adopt the FWS are urged to do so – incorporating both the Annual Variable Component (AVC) and Monthly Variable Component (MVC). This system helps firms stay resilient by adjusting wages according to business conditions instead of cutting jobs when times are tough.
The NWC’s wage recommendations include:
– All employers adopting the FWS to strengthen cost flexibility;
– Employers doing well should reward employees with appropriate built-in increases and variable payments;
– Employers doing well but anticipating uncertainty can moderate built-in increments, but should still pay fair variable payouts based on performance;
– Employers not doing well should exercise wage restraint, with management leading by example, while investing in productivity and employee upskilling.
At the same time, lower-wage workers should receive adjustments aligned with the specific LWW guidelines.
There are also incoming structural shifts in pay that will be introduced. The CPF monthly salary ceiling will rise from $7,400 to $8,000 from 1 January 2026, and employer CPF contribution rates for older workers will increase by 0.5 %-pts, with government offsets to help businesses manage the transition.
Looking ahead, Singapore’s ageing workforce and evolving work patterns mean wage frameworks must keep evolving. To that end, the NWC is reviewing how the current system can better reflect skills, contributions and varying workloads, with updates expected by 2026.
#2 Pressing On With Sustained Wage Growth For Lower-Wage Workers (LWWs)
Uplifting lower-wage workers remains a national priority. Today, nearly 9 in 10 full-time LWWs benefit from the Progressive Wage Model (PWM), Local Qualifying Salary (LQS), and the Progressive Wage Mark.
To support wage increases, the Government’s Progressive Wage Credit Scheme (PWCS), enhanced at Budget 2025, continues to co-fund business efforts.
LWWs continue to gain ground on the median income too. The NWC recommends that wages for those earning up to $2,700 per month should grow faster than the median wage. The 2025 guidelines recommend:
– Employers doing well with positive prospects should give LWWs wage increases at the higher end of 5.5%-7.5%, or at least $105–$125;
– Employers doing well but facing uncertainties should provide increases at the middle to lower end of 5.5%-7.5%, or at least $105–$125;
– Employers not doing well should still raise wages at the lower end of 5.5%-7.5%, and review wages again if business conditions improve.
The Council also urges employers to provide higher percentage increases for LWWs earning comparatively less, ensuring sustained basic wage growth.
Occupational Progressive Wages (OPW) for Administrators and Drivers were also updated.
To reflect changing job roles, especially with digitalisation, the NWC has refreshed the OPW job ladders and set new wage requirements for 1 July 2026 to 30 June 2028. This will uplift 44,700 resident administrators, with 43,800 earning below the 2026 wage levels today.
In addition, 12,900 resident drivers can also look forward to revised job ladders offering clearer progression and higher wage rungs for those reclassified into higher-skilled levels.
| OPW Job Level | From 1 July 2025 [Current] | From 1 July 2026 [New] | From 1 July 2027 [New] |
| Administrative Assistant | $1,980 | $2,170 | $2,360 |
| Administrative Executive | $2,580 | $2,760 | $2,940 |
| Administrative Supervisor | $3,160 | $3,340 | $3,520 |
| Group A Level 1 Driver | $2,190 | $2,370 | $2,550 |
| Group A Level 2 Driver | $2,190 / $2,320 | $2,485 | $2,665 |
| Group B Level 1 Driver | $2,320 | $2,505 | $2,690 |
| Group B Level 2 Driver | $2,320 | $2,555 | $2,790 |
In total, 57,600 LWWs in these occupations will benefit from the updated requirements.
The NWC also emphasises that meaningful transformation and the adoption of technology require continued training and upskilling, calling on employers to use government programmes to support digital transformation and productivity gains.
Read Also: Progressive Wage Model: How Much Will Singapore Employers Have To Pay Their Workers
#3 Pressing On With Transforming Jobs And Upskilling the Workforce
To secure sustainable wage growth, Singapore must continue transforming jobs: powered by reskilling, upskilling, and technological adoption. With AI rapidly reshaping industries, workers and employers must stay agile.
However, the latest data shows a worrying trend: fewer companies and employees participated in structured training in 2024. The NWC urges a reversal of this decline. Here’s what employers can do:
– Reskill and upskill workers for future roles using SSG-funded programmes, which offer up to 90% course fee subsidies and salary support under WSG’s Career Conversion Programmes.
– Redesign jobs alongside business transformation. Through NTUC’s Company Training Committees (CTCs), employers can identify productivity gaps and implement AI- and tech-enabled solutions. The CTC Grant (co-funding up to 70% of project costs) supports these efforts.
– Build training capability across the company by tapping NACE Centres, SkillsFuture Queen Bees, Skills Development Partners, and digital tools like TalentTrack.
– Strengthen HR competencies, including encouraging HR practitioners to pursue the IHRP Certification, which now includes a $100 subsidy until September 2026.
What employees can do:
– Workers should take charge of their career development:
– Younger workers can use SkillsFuture Credit, UTAP support, and NTUC career preparation programmes.
– Mid-career switchers can tap Career Conversion Programmes.
– Workers aged 40 and above benefit from the SkillsFuture Level-Up Programme, enhanced subsidies, and the Mid-Career Training Allowance for long-form training.
Employers and employees are also encouraged to hold structured career conversations to align business needs with personal goals, using resources such as Jobs Transformation Maps and SkillsFuture insights.
Better Jobs, Better Skills, And Better Wages
As discussed, the Government accepted all NWC recommendations, and the guidelines apply across public and private sectors, including those unionised or non-unionised. They also include PMETs, rank-and-file workers, part-timers, re-employed seniors and, where applicable, platform workers.
For successful implementation, employers are encouraged to share relevant business information with unions and to seek guidance from SNEF, NTUC, trade associations and chambers. SMEs may also approach the ethnic chambers for support.
The NWC emphasises that productivity, skills development, and fair wages must continue to move together. These efforts not only raise living standards but also strengthen Singapore’s competitiveness and social compact – ensuring that no worker is left behind as the economy transforms.
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