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MOM · DOCUMENTS & GUIDES

NWC 2025–2026 Guidelines Infographic: Fair and Sustainable Wage Increases

Principles and three employer circumstances

The infographic calls for fair and sustainable wage growth through the Flexible Wage System. Employers should share productivity gains, review market benchmarks and adjust ranges where possible. Positive-performing firms with good prospects should give built-in increases and variable pay; those with uncertain prospects may moderate built-in increases but should still reward contributions with variable payments. All firms should use flexible wage structures for resilience.

Coverage and distinction from legal wage floors

The guidance covers unionised/non-unionised and public/private employers, PMETs, rank-and-file, middle/lower earners and re-employed staff, whether full-time or part-time. Wage-increase references exclude the Annual Variable Component, bonuses and one-off payments. NWC recommendations do not replace applicable PWM, OPW or LQS minimums.

Lower-wage workers and numerical recommendations

For employees earning up to S$2,700 gross monthly, the infographic recommends built-in increases of 5.5%–7.5%, calibrated to business performance. Employers doing well with positive prospects should use the higher end or at least S$105–S$125, whichever is higher; those doing well but uncertain should use the middle/lower end or the dollar amount, whichever is higher. Those not doing well should use the lower end and consider more if conditions improve.

It also highlights revised OPW jobs and higher wage requirements for 1 July 2026–30 June 2028. The percentage recommendation is NWC guidance, distinct from legally applicable wage floors.

Transformation, career conversations and implementation

Employers should reskill employees for future jobs, redesign work with business transformation, budget for continuing training, strengthen HR capability including IHRP certification, and hold structured career conversations. Workers can use relevant SkillsFuture/union support, career-conversion programmes and official jobs/skills intelligence to prepare transitions.

Share wage, business-performance and prospects information with unions to support negotiation. SNEF, trade associations/chambers, NTUC and unions can advise. These recommendations promote AI/digital transformation with people development, rather than technology adoption alone.

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