Singapore wage recommendations distinguish profitable and loss-making employers
Employers planning December pay rises for workers earning gross monthly wages of up to S$2,800 receive different recommendations based on business performance and outlook. Existing wage obligations still apply.
Singapore employers planning lower-wage pay rises from December have new recommendations that differ according to business performance, profitability and outlook. The government accepted the guidance on 19 October from the National Wages Council (NWC), which recommends wage adjustments to employers.
The guidelines cover 1 December 2026 to 30 November 2027. Their lower-wage recommendations apply to employees earning gross monthly wages of up to S$2,800. They are advisory wage recommendations, not a new statutory order imposing a uniform increase on every employer.
Business conditions determine the recommendation
Employers that have done well and expect positive business prospects are advised to make built-in increases near the top of the 6%–8% range, or at least S$135–S$170, whichever is higher. Those that have done well but face uncertain prospects are directed towards the middle of that percentage range, with the same minimum-dollar range and higher-of comparison.
For employers that have not done well but remain profitable, the recommendation is an increase near the bottom of the 6%–8% range, or at least S$120, whichever is higher. Firms that have not done well and are unprofitable are instead advised to provide a built-in increase of at least S$120. Employers should review wages again if their prospects improve.
The NWC defines an unprofitable establishment as one whose total expenses exceed total income, including operating and non-operating income. The distinction therefore matters when employers assess which recommendation applies to their payroll budgets.
Check the wage base before budgeting
Gross monthly wages include allowances, productivity incentive payments, overtime and employee CPF contributions, alongside basic monthly wages. Annual Wage Supplement, bonuses and employer CPF contributions are excluded. Using basic salary alone would therefore miss components included in the guideline’s wage definition.
For part-time employees, the percentage-range recommendation applies, but the minimum-dollar quantum does not. Employers should keep that distinction separate when costing adjustments across different working arrangements.
Existing obligations also remain. Firms covered by sectoral or occupational Progressive Wage Models must meet the applicable wage requirements regardless of profitability. Employers hiring foreign workers must meet the Local Qualifying Salary requirement for local employees outside those models.
Sources: Ministry of Manpower government acceptance announcement; National Wages Council 2026/2027 guidelines.
