Singapore’s government announced that it accepts the National Wages Council (NWC) 2022/2023 Guidelines.

“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,” the Ministry stated. “This will help in addressing workers’ concerns about inflation and rising costs of living. At the same time, we recognise that inflation also affects business costs and prospects.”

“Hence, the government supports the tripartite agreement to have differentiated wage guidelines for employers, to account for the different performance and outlook of businesses,” the Ministry stated.

The government also said that it encourages all employers to implement the Flexible Wage System (FWS) as the uncertainties ahead continue to ‘underscore the need for resilience and flexibility in wage structures’.

The Ministry added, “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 Occupational Progressive Wages (OPW) for Administrators and Drivers will bring 56,000 full-time lower-wage workers under the coverage of Progressive Wages from March 2023,” The Ministry continued. “The government will continue to support employers in uplifting lower-wage workers through the 5-year Progressive Wage Credit Scheme, which co-funds eligible lower-wage worker wage increases.”

The OPW for administrators and drivers were first announced in the 2021 report of the Tripartite Workgroup on Lower-Wage Workers. Employers who hire foreign workers are required to adhere to the OPW wage and training requirements for their resident administrators and drivers.

“The government will continue to work with tripartite partners in the NWC to champion fair, inclusive and sustainable wage growth for our workers while ensuring that our businesses stay productive and competitive,” the Ministry stated.