The Guidelines apply to all employees – professionals, managers, executives, technicians and rank-and-file employees, in unionised and nonunionised firms, in both the public and private sectors.

NWC recognises the contributions of employers and employees in sustaining businesses and saving jobs, and calls on employersto ease exceptional wage policies put in place earlier, setting out the following key recommendations for all employers:

1. Wages should move in tandem with pace of business recovery and be based on flexible wage system. The Flexible Wage System, as defined in the employers’ guide released on 29 October 2021, is “one that has a sizeable variable component that can be adjusted quickly by companies to reduce wage costs during business slowdowns as well as to reward employees fairly when companies do well in a particular year”. The NWC has called on employers to implement the FWS to become more resilient. This also happened in October 2020, when issuing the 2020/2021 Supplementary Guidelines that called on employers to urgently implement the FWS to remain resilient and competitive during the COVID-19 pandemic and emerge stronger when the economy recovers. Key benefits for employers from the FWS are increased flexibility and enhanced competitiveness and higher productivity.
2. Ensuring sustained wage growth for lower-wage workers, providing for the first time a guidance on the rate of progressive wage growth for lower-wage workers.To ensure that wages of lower-wage workers grow faster than the median wage level, according to the Guidelines, employers should provide a built-in wage increase of 4.5 per cent to 7.5 per cent of gross wages or $70 to $90, whichever is higher, for workers earning a gross monthly wage of up to $2,000.
3. Forge ahead in transforming jobs and upskilling workforce. Tripartite partners should take decisive steps to transform jobs and upskill the workforce and all employers should offer structured training for their employees. The support from employees on skills upgrading and productivity improvement efforts plays an important role in helping to sustain wage increases over time without affecting the economic competitiveness.

The NWC encourages employers to work with the employers’ associations and unions to address the issues and to implement the Guidelines, sharing relevant information, such as company wage information, business performance and prospects, to facilitate wage negotiation.

The Singapore National Employers Federation (SNEF) declared to strongly support the National Wages Council (NWC) Guidelines 2021/2022.

The President, Dr Robert Yap, said: “It is crucial for employers to be agile, resilient and inclusive so that employers and their employees can be united in confronting any challenges along the way. By transforming business and upskilling employees, employers will be more agile to seize new growth opportunities as the economy rebounds. By enhancing wage flexibility, employers can be more resilient in facing future economic downturns. By being inclusive, employers can better motivate their lower-wage workers to do their best in their jobs. Lastly, transforming business, upskilling employees and uplifting lower-wage workers are long-term endeavours. SNEF will continue to work with the Government, the Labour Movement and employers to ensure that we can emerge stronger together.”