Employers should think about helping their staff with rising costs beyond support from the government, the National Wages Council (NWC) said on Tuesday (Oct 31).
“To further help our employees cope, employers should consider giving a one-off special lump sum payment to employees, with heavier weightage for lower to middle income employees,” the council said in its wage guidelines for December 2023 to November 2024.
The NWC, a body comprising employer, employee and government representatives, made a similar recommendation in 2008 and 2011 when inflation was high. For unionised companies, this payment should be decided on through mutual agreement between the management and the union.
Mr Peter Seah, chairman of the National Wages Council, said a specific number or percentage can make it difficult to address the varying circumstances of employers.
“But the general call, I think, is a very positive call – to give a lump sum, particularly to the lower-wage and middle-wage people so that they can better navigate the inflationary pressures that they are now facing,” he said.
The NWC also said it recommended a 5.5 per cent to 7.5 per cent increase in gross monthly wages for lower-wage workers, or a pay bump of at least S$85 (US$62) to S$105, whichever is higher.
Employers who have done well and have positive business prospects should provide an increase at the upper bound of the range. Companies that have done well but face uncertain prospects should raise salaries by a percentage or amount in the lower to middle bound of the range.
Businesses that have not performed well should increase wages at the lower bound of the range.
“If business prospects subsequently improve, employers should consider further wage increases,” NWC said.
