The National Wages Council (NWC) has released its recommendations for wages for the period 1 July 2013 to 30 June 2014.

The NWC noted that the economy has stabilised somewhat since 2012, although some uncertainties remain.  It has also taken into account the Ministry of Trade and Industry’s GDP growth forecast of between 1~3% for 2013, and the Monetary Authority of Singapore’s forecast of inflation between 3~4% for 2013.

In light of the above, the NWC has recommended the following:

  • that wages continue to track productivity growth;
  • that employers share productivity gains with workers fairly and in a sustainable manner;
  • that employers give workers built-in wage increases, taking into account current and future business prospects; and
  • that employers provide variable wage components in accordance to workers’ performance and contributions.

To help lower wage workers cope, the NWC further recommends the following for workers earning up to $1,000:

  • that employers grant lower-wage workers with a built-in wage increase in the form of a fixed dollar quantum and a percentage.  It is recommended that increments for lower-wage workers be at least $60; and
  • that employers who are performing well give a one-off lump-sum bonus to help these workers cope with rising costs.

The full set of recommendations can be read here.