NWC 2026/2027: NTUC backs highest recommended wage increase for lower-wage workers since 2021

• NTUC backs the highest recommended percentage wage increase since 2021. The NWC’s 2026/2027 guidelines recommend built-in wage increases of 6 to 8 per cent for lower-wage workers earning a gross monthly wage of up to $2,800.
  
  
• Wage recommendations reflect different business conditions. Employers should calibrate increases according to their performance and prospects, with a new category recommending an increase of at least $120 for lower-wage workers in firms that have not done well and are unprofitable.
  
  
• All workers should share fairly in economic and productivity gains. NTUC urges employers to recognise workers’ contributions, including those of PMEs, and share relevant business information with unions to support fair wage negotiations and implementation.
  
  
• Protected training time will help workers prepare for AI-driven changes. NTUC calls on employers to make time for workers to upgrade their skills, with support available through AI-Ready SG, Company Training Committees and the Union Training Assistance Programme.

NTUC supports the National Wages Council’s (NWC) recommendation for built-in wage increases of 6 to 8 per cent for lower-wage workers, the highest recommended percentage range since 2021.

The recommendation is a positive step towards improving workers’ livelihoods and narrowing the wage gap, said the Labour Movement.

The 2026/2027 guidelines, announced on 19 October 2026, cover all workers earning a gross monthly wage of up to $2,800, which is the 20th percentile of full-time employed Singapore citizens.

NWC recommends:

• Employers that have done well and have positive business prospects should provide a built-in wage increase at the higher end of the recommended range, or at least $135 to $170, whichever is higher.
  
  
• Employers that have done well but face uncertain business prospects should provide a built-in wage increase at the middle of the recommended range, or at least $135 to $170, whichever is higher.
  
  
• Employers that have not done well but remained profitable should provide a built-in wage increase at the lower end of the recommended range, or at least $120, whichever is higher.
  
  
• Employers that have not done well and were unprofitable should provide a built-in wage increase of at least $120.

The Government has accepted the guidelines, which call on employers to take a positive-leaning approach to wage increases while considering their business performance and prospects.

NTUC President K. Thanaletchimi welcomed the recommendations and urged employers that have benefited from growth to do more for lower-wage workers.

“We are heartened by our tripartite partners’ commitment to uplift lower-wage workers and the NWC recommendation for employers that have done well to do more for lower-wage workers through higher wage increments above the recommended guidelines to share the fruits of their growth and sustain our progress in narrowing the wage gap,” she said.

Higher wage increases, with flexibility for struggling firms

The recommendations recognise that stronger economic growth has not benefited every business equally.

A new category was also recommended, covering employers that have not performed well and are unprofitable, to provide lower-wage workers with a built-in wage increase of at least $120.

Singapore National Employers Federation (SNEF) President Kuah Boon Wee said some employers had found it difficult to afford the previous years’ recommended increases.

Ms Thanaletchimi said the new category had been discussed extensively, taking into consideration employers’ concerns and workers' feedback on uneven conditions before being agreed to.

The additional flexibility aims to encourage these businesses to adopt the guidelines and continue supporting their lower-wage workers.

NTUC also stressed that employers must continue to comply with the prevailing Progressive Wage Model (PWM) and Local Qualifying Salary requirements.

It urged firms facing difficult conditions to review wages regularly and consider further increases when business prospects improve.

All workers should share in economic gains

The recommendations come amid stronger-than-expected economic growth.

Based on advance estimates, Singapore’s economy expanded by 6 per cent year-on-year in the first three quarters of 2026 and is projected to grow by 4.5 to 5.5 per cent for the full year.

Labour productivity rose by 3.8 per cent in the first half of 2026, while overall unit labour cost fell by 0.8 per cent.

However, performance differed across sectors.

Growth was supported by strong global AI-related demand benefiting segments such as electronics and precision engineering, while the food and beverage services sector contracted.

Ms Thanaletchimi said stronger economic performance did not mean workers’ concerns had disappeared.

“Even amid the positive economic outlook, our workers remain concerned about cost-of-living pressures, job security, and the impact of technological change on jobs,” she said.

NTUC urges employers to ensure that all workers, including professionals, managers and executives (PMEs), receive a fair share of economic and productivity gains.

Companies that have done well should recognise workers’ contributions through built-in wage increases and variable payments.

Those facing uncertainty may moderate built-in increases while continuing to reward workers through variable payments that reflect business performance.

The Labour Movement also supported the adoption of the Flexible Wage System, which enables employers to reward workers during upturns and manage costs while sustaining employment during periods of uncertainty.

Unions to support fair implementation

NTUC called on employers to share relevant wage information, business performance and prospects with unions to support meaningful negotiations and the fair application of the guidelines.

When asked how employers could be discouraged from unfairly claiming that they were not doing well, NTUC Assistant Secretary-General Melvin Yong said unions engage companies regularly and have an ongoing understanding of their performance, rather than receiving information only at the end of the year.

Ms Thanaletchimi added that unions act as gatekeepers in unionised companies and urged employers to be transparent about their financial performance.

“Trust is something that we cannot take for granted,” she said, stressing the importance of confidence between employers and workers.

Mr Yong also noted that unionised companies have higher adoption rates for the NWC guidelines.

Even where companies do not fully meet the recommendations, unions use them as a benchmark in annual wage negotiations.

While the NWC guidelines are not mandatory, Ministry of Manpower Permanent Secretary Stanley Loh said the Government will work closely with NTUC and SNEF to encourage employers to implement them.

To support employers in raising the pay of lower-wage workers, the Government has extended the Progressive Wage Credit Scheme until the end of 2028.

The scheme provides transitional support for eligible wage increases while businesses invest in workforce and enterprise transformation.

Protected training time as AI changes jobs

Beyond wages, NTUC called on employers to provide protected training time so workers can develop new skills without having to choose between learning and their work responsibilities.

Ms Thanaletchimi explained that employers need to make arrangements to support this.

“In practical terms, this means planning workloads and work arrangements so that employees can attend relevant training without having to compromise their work responsibilities or rely solely on their personal time,” she said.

Through its AI-Ready SG initiative, NTUC will help businesses adopt AI and equip workers with relevant skills and literacy.

Employers can also work with NTUC Company Training Committees (CTCs) to improve productivity, redesign jobs and strengthen workforce capabilities.

Employers establishing CTCs can tap on the CTC Grant, which co-funds up to 70 per cent of qualifying costs for enterprise and workforce transformation projects and associated training.

NTUC encouraged workers to keep their skills current and pursue relevant training.

Members can tap on the Union Training Assistance Programme (UTAP) for up to $500 in funding support for training courses and AI tools.

“NTUC will continue working with employers and unions to translate these recommendations into better wages, welfare and work prospects for every worker, while supporting business and workforce transformation for sustainable wage growth,” the Labour Movement said.

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