The National Wages Council's (NWC) focus over the last two years on quantitative recommendations to improve the lot of low-wage workers in Singapore has paid off.
In 2012, the minimum built-in wage increase was $50 while in 2013, it was $60.
The NWC says the two rounds of quantitative guidelines have contributed to strong 2013 real wage growth for low-wage workers.
As of December 2013, nearly eight in ten (77%) private establishments gave or intended to give wage increases to their employees earning a monthly basic salary of up to $1,000.
This was a substantial increase from the six in ten (60%) that did so in 2012.
So the NWC urges continued efforts to improve the wage outcomes of low-wage workers and has recommended for this year that employers grant low-wage workers a built-in wage increase in the form of a dollar quantum and a percentage.
This will give the low-wage workers in the firm a higher percentage built-in wage increase.
It has suggested that employers grant a built-in wage increase of at least $60 for low-wage workers earning a basic monthly salary of up to $1,000; and also grant an equitable and reasonable wage increase and or a one-off lump sum based on skills and productivity for low-wage workers earning above $1,000.
The NWC has also welcomed the tripartite efforts in championing the Progressive Wage Model or PWM to improve the job prospects and income of workers.
It is also heartened to see strong employer support for the PWM and calls on employers in the cleaning, security and landscaping industries to implement the model as soon as possible.
The council is also urging employers in other industries to also adopt the concept of "progressive wages" and provide a clear progression path for their workers to upskill and upgrade as the PWM will allow firms to make better use of manpower and pay higher wages, commensurate with their workers' job scopes, responsibilities and productivity levels.
- Related article:Read about how NTUC Foodfare's workers benefitted when Foodfare bettered NWC's recommendations.
Turning to wage increases, the NWC notes that the tight labour market will place upward pressure on wages.
To be sustainable and not erode the competitiveness of the economy, real wage increases should be in line with productivity growth over the long term.
The NWC says there have been tentative signs of productivity growth improvement, and it is important to ensure that this is sustained.
Finally, the NWC also notes that MediShield Life will be introduced in 2015 and all employees who are Singapore Citizens or Permanent Residents will benefit from the portable and lifelong medical coverage.
So the council encourages employers and unions to work together and look into appropriate measures to boost employees’ ability to pay for their Medishield-Life premiums.
The NWC is chaired by
* Click here for the National Wages Council (NWC) Guidelines 2014/2015
