~ NTUC supports the National Wages Council (NWC) Guidelines for 2024/25 and its recommendations to continue uplifting the wages of lower-wage workers, and share the gains from increased productivity with all workers, including broad middle workers ~
The National Trades Union Congress (NTUC) and our affiliated unions and associations support the recommendations put forth in the National Wages Council (NWC) Guidelines for 2024/25 released today. The Guidelines will be in force from 1 December 2024 to 30 November 2025. NTUC calls on employers to adopt these guidelines, and to reward all workers including broad middle workers, with wage increases that are fair, sustainable and share the gains from labour productivity improvements. NTUC also urges employers to press on with the national effort to uplift the lives and livelihoods of lower-wage workers (LWWs).
NTUC acknowledges signs of a tightening labour market. Resident unemployment rate has contracted to 2.6 per cent in July 2024 on a seasonally adjusted basis, close to pre-Covid-19 lows of 2.5 per cent in March 2015. Based on projections by the Ministry of Trade and Industry, Singapore’s economy will grow by 2.0 per cent to 3.0 per cent in 2024, supported by a gradual recovery in the manufacturing and trade-related services sectors due to robust electronics demand. 1 Continued recovery in air travel and tourism will boost the aviation and tourism-related sectors, while growth in the finance & insurance sector is expected to remain healthy, as global policy rate cuts and disinflation take effect. On balance, Singapore’s external demand outlook is expected to be resilient for the rest of the year. However, downside risks in the global economy remain. These include intensification of geopolitical and trade conflicts which could dampen business sentiments, and potential disruptions to the disinflation process that could result in tighter financial conditions for a longer period.
Fair and Sustainable Wage Increases for All Workers, Including Broad Middle Workers
With sustained productivity growth over the longer term, NTUC urges employers to adopt the Guidelines and reward their workers with fair wage increases that reflect the increased productivity, including broad middle workers . NTUC also calls upon employers who have done well, to take advantage of the improved economic prospects and pass on productivity-gains and profits to workers in the form of built-in wage increases and variable payments.
NTUC recognises the ongoing economic and business uncertainties and, therefore, supports the Government's call for employers to adopt the Flexible Wage System (FWS) to better navigate these challenges.
Uplifting the Lives and Livelihoods of Lower-Wage Workers
This year’s Guidelines for LWWs will cover workers who are earning a gross monthly wage of up to $2,500. The Guidelines recommend wage increments of 5.5 per cent to 7.5 per cent of gross monthly wages for all companies hiring LWWs, subject to a minimum of $100 to $120 for companies that have done well. It also recommends that companies that have not done well and face economic challenges to provide LWWs with a built-in wage increase at the lower end of 5.5 per cent to 7.5 per cent of gross monthly wages.
The increase in the minimum quantum is a positive step towards uplifting the lives and livelihoods of our LWWs and narrowing the wage gap between LWWs and median wage workers over this decade. NTUC strongly supports the NWC’s call on employers to provide higher percentage wage increases for LWWs who are earning comparatively lower wages, in line with the renewed Progressive Wage strategy recommended by the Tripartite Workgroup on Lower-Wage Workers (TWG-LWW) to aim for higher wage growth for lower-paid LWWs.
NTUC Supports Workforce and Business Transformation for Sustainable Wage Growth
For wage increase to be sustainable, NTUC calls on employers and workers to take a proactive approach in business and workforce transformation to remain relevant and encourages more employers to form Company Training Committees (CTCs) with NTUC and our affiliated unions.
Through the NTUC Training and Placement (T&P) Ecosystem, employers can utilise our resources and network to support workforce and business transformation initiatives. NTUC has established over 2,300 CTCs, and companies have leveraged the CTC Grant to implement projects aimed at enhancing workers’ wages, welfare and work prospects. Additionally, NTUC urges members to take advantage of the NTUC Union Training Assistance Programme (UTAP) alongside their SkillsFuture Credit to invest in their skills and reach their full potential.
NTUC would like to thank our Tripartite Partners for the discussions at this year’s convening of National Wages Council and we appreciate the efforts taken to support workers and uplift them.
This is a step forward in one aspect of NTUC’s ongoing mission to ensure that no worker is left behind in the nation’s progress. NTUC remains committed to ensuring that every worker has better wages, welfare and work prospects because NTUC Cares for all workers. We look forward to employers adopting the guidelines.
Ms K Thanaletchimi
President
[1] Source: Ministry of Trade and Industry, MTI Narrows 2024 GDP Growth Forecast to “2.0 to 3.0 Per Cent”, 13 August 2024
