The NWC calls on employers to press on with business and workforce transformation so as to stay competitive and resilient amidst the more challenging economic outlook. Productivity-driven growth is key to enabling sustainable wage growth. To support workforce transformation, the NWC also encourages employers to certify their human resource professionals with the Institute for Human Resource Professionals (IHRP) and tap on its resources.
The NWC also calls on employers to reward employees with wage increases or variable payments that are fair and sustainable. This will help in addressing employees’ concerns about inflation and rising costs of living. At the same time, we recognise that rising inflation also affects business costs and prospects. Hence, the NWC recommends having differentiated wage guidelines for employers, depending on their past performance and outlook for the future. The NWC also encourages all employers to implement the Flexible Wage System, so as to put employers and employees in a better position to deal with any headwinds.
The NWC also encourages employers to consider giving a one-off special lump sum payment to employees, with heavier weightage for lower to middle income employees, to help them cope with the impact of higher costs of living this year.
The NWC reiterates that special consideration should be given to lower-wage workers. The NWC’s recommended wage growth for lower-wage workers balances business sustainability with meaningful wage increments, and will bolster ongoing efforts to narrow the income gap. The 2024-2025 Occupational Progressive Wages (OPW) wage requirements will apply to about 64,000 full-time lower-wage workers in Administrator and Driver occupations. Of these, about 52,000 were earning below the stipulated 2024 OPW wage requirement in 2022, and can expect to see a wage increase from 1 July 2024.
Guidelines, which is also available on our website go.gov.sg/nwc20232024.