NTUC backs 5.5% to 7.5% pay rise for lower-wage workers under new NWC Guidelines

The National Wages Council (NWC) has recommended pay increases of between 5.5 per cent and 7.5 per cent, or at least $105 to $125, whichever is higher, for workers earning up to $2,700 a month.

The council released its recommendations on 11 November 2025. The 2025/26 NWC Guidelines aim to uplift lower-wage workers while maintaining wage sustainability across sectors.

The Government accepted the NWC’s recommendations on the same day.

NTUC supports call to uplift lower-wage workers

In a statement, NTUC said it “fully supports” the NWC’s call for employers to grant higher percentage wage increases to lower-wage workers.

NTUC said: “The increase in the minimum quantum is a positive step towards uplifting the lives and livelihoods of our lower-wage workers and narrowing the wage gap between lower-wage workers and median wage workers over this decade … NTUC also supports the NWC’s call for employers to consider additional wage increases if business prospects improve.”

NTUC also urged employers to adopt the new wage guidelines, share productivity gains, and ensure fair, sustainable wage increases for all workers, while continuing national efforts to uplift lower-wage workers.

 The new guidelines will take effect on 1 December 2025 and, for the first time, will include recommendations for platform workers.

Revised Occupational Progressive Wages (OPW)

NTUC also welcomed the NWC’s updated Occupational Progressive Wage (OPW) recommendations, which will apply from 1 July 2026 to 30 June 2028.

 The revisions update job ladders, descriptions, and wage benchmarks for resident administrators and drivers, aligning them more closely with median wage levels while reflecting current economic conditions.

For administrators, the updates recognise ongoing digital transformation, linking wage progression to productivity gains in enhanced roles. For drivers, an expanded job ladder provides clearer career pathways and higher pay tied to new skills and responsibilities.

 According to NTUC, the updates aim to deliver meaningful wage growth, encourage continuous upskilling, and help workers progress in their careers.

Labour market showing signs of softening

While the labour market has remained resilient in the first half of 2025, MOM noted signs softening

The economy grew 4.3 per cent year-on-year in the first half of 2025, accompanied by strong productivity gains of 2.9 per cent and rising real incomes of 3.2 per cent.

However, GDP growth is expected to ease to between 1.5 and 2.5 per cent in 2025 amid weaker global demand and trade tensions.

Beyond weakening global demand and trade tensions, NTUC Assistant Secretary-General Patrick Tay also warned of cyclical and structural challenges, along with the rise of Generative AI.

He shared that the cyclical challenges could cause sectors to experience uneven growth, while industries facing disruption like digitalisation could encounter structural challenges that will require workers to acquire new skills.

“The advent of Gen AI is [also] hitting every economy, including Singapore, and affecting different sectors in different ways,” said Mr Tay.

Against this backdrop, the NWC urged employers to:

• ensure fair and sustainable wage increases, supported by a Flexible Wage System (FWS);

• support sustained wage growth for lower-wage workers;

• drive transformation by staying adaptable investing in upskilling and reskilling.

NTUC urges business transformation and workforce development

To ensure sustainable wage growth, NTUC urged employers to take a proactive approach by transforming their businesses and investing in workforce development.

This includes reskilling and upskilling workers, redesigning jobs to raise productivity, strengthening long-term training capabilities, and setting aside adequate budgets to support continuous learning across all career stages.

Companies can leverage NTUC’s Company Training Committees (CTCs) for resources and networks that support workforce and business transformation.

To date, NTUC has set up nearly 3,700 CTCs, with companies leveraging the CTC Grant to implement projects that improve workers’ wages, welfare, and work prospects.

NTUC also encouraged workers, especially younger employees, to make full use of available training and career support schemes, such as the Union Training Assistance Programme (UTAP), SkillsFuture Credit, and the NTUC Youth EXCEL programme.

It added that these initiatives can help young workers build relevant skills and gain confidence for long-term career growth.