~ All workers, including PMEs, should have a fair share in Singapore’s economic growth, with higher wage increases for workers in companies that have benefitted and achieved productivity gains ~
~ As AI transforms jobs, NTUC calls for continued investment in skills upgrading and protected training time to prepare workers for changing job demands ~
The National Trades Union Congress (NTUC), together with our affiliated unions and associations, supports the recommendations put forth in the National Wages Council (NWC) 2026/2027 Guidelines released today. In particular, this year’s recommended built-in wage increase of 6.0 per cent to 8.0 per cent for LWWs is the highest since the quantitative guidelines were introduced in 2021. The stronger recommendation is a welcome step towards sustaining progress in uplifting lower-wage workers and narrowing the wage gap. The Guidelines adopt a positive-leaning approach to wage increases and provide stronger wage recommendations for lower-wage workers (LWWs). NTUC urges employers to adopt the Guidelines and ensure that all workers, including Professionals, Managers, Executives (PMEs), have a share in Singapore’s economic progress and gains from labour productivity improvement. NTUC also supports the NWC recommendation for employers to do more through higher wage increments where possible.
Based on advance estimates, the economy grew 6.0 per cent year-on-year in the first three quarters of 2026 and is projected to grow at 4.5 to 5.5 per cent in 2026. Labour productivity also improved 3.8 per cent year-on-year in the first half of 2026 while overall unit labour cost fell by 0.8 per cent. Inflation picked up in August 2026 to 2.3 per cent for CPI-All Items and 2.2 per cent for MAS Core Inflation. Both inflation measures are projected to grow 1.5-2.5 per cent for 2026. The NWC’s recommendations seek to ensure that workers share in the gains from stronger growth and that the purchasing power of their wages are protected while keeping wage increases sustainable and aligned with productivity, amid continued global uncertainty and uneven conditions across sectors.
Taken together, the 2026/2027 Guidelines reaffirm the importance of ensuring that workers continue to benefit from Singapore's economic progress, while providing employers with the flexibility to respond to differing business conditions and uncertainties.
NTUC Calls for Fair Wage Increases for All Workers that Reflect Positive Business Performance and Prospects
NTUC urges all employers to adopt the Guidelines and take a positive-leaning approach to wage increases based on their business performance and prospects. Companies which have done well should share profits and productivity gains with workers through built-in wage increases and variable payments that recognise the contributions of workers across all roles. Those facing uncertainty may moderate built-in wage increment while continuing to recognise workers through variable payments that commensurate with business performance.
Against this backdrop, NTUC supports the NWC’s call for all employers to adopt the Flexible Wage System, which gives employers the flexibility to reward workers during upturns, and better manage costs during periods of uncertainty while sustaining employment.
Employers should share relevant wage information, business performance and prospects with unions to facilitate meaningful wage negotiations and the fair application of the Guidelines.
NTUC Welcomes Stronger Wage Recommendations to Uplift Lives and Livelihoods of Lower-Wage Workers (LWWs)
This year’s Guidelines for LWWs cover those earning a gross monthly income of up to $2,800. For employers who have done well, the Guidelines recommend built-in wage increases at the higher or middle end of the 6.0 per cent to 8.0 per cent range, or at least $135 to $170, whichever is higher. Beyond that, the NWC also encourages employers who have done particularly well to provide wage increases above the Guidelines, if they have the means to do so. This outcome keeps wage momentum going and gives lower-wage workers a share of economic progress.
For firms that have not done well, the Guidelines recommend a built-in wage increase at the lower end of the 6.0 per cent to 8.0 per cent range, or at least $120, whichever is higher. Recognising that there are some employers that face economic difficulties, the Guidelines introduce a new category requiring a minimum wage increase of at least $120 for employers that have not done well and are unprofitable, providing greater assurance to LWWs. NTUC strongly supports the NWC’s safeguards requiring employers that hire LWWs to continue complying with the prevailing Progressive Wage Model and Local Qualifying Salary requirements.
NTUC calls on all employers to continue supporting meaningful and sustained wage growth for LWWs to advance progress in narrowing the wage gap. Employers facing uneven conditions should implement the recommendation according to their circumstances, review wages regularly and consider further increases when business prospects improve.
NTUC Calls on Employers to Provide Protected Training Time
As AI reshapes work, workers will need opportunities to build new skills while businesses redesign jobs and strengthen workforce capabilities. NTUC calls on employers to provide protected training time, so that workers can pursue training without having to choose between learning and their work responsibilities.
Employers should adopt AI effectively and responsibly, redesign jobs and strengthen their human resource capabilities to support workforce transformation. These efforts can help businesses realise the productivity benefits of AI while creating better jobs and opportunities for workers over the longer term.
Through NTUC’s AI-Ready SG initiative, NTUC will help businesses adopt AI and equip workers with AI-relevant skills and literacy. Employers can also partner NTUC through Company Training Committees to drive productivity, redesign jobs and strengthen workforce capabilities. NTUC encourages workers to actively prepare for changes in their jobs by keeping their skills current and pursuing relevant training opportunities. NTUC members can tap on the Union Training Assistance Programme (UTAP) for up to $500 funding support for training courses and AI tools.
NTUC Acknowledges Tripartite Partners’ Support for Higher Wages and Better Livelihoods for Workers
NTUC would like to thank Tripartite Partners for the constructive discussions at this year’s National Wages Council. We appreciate their continued commitment to workers across all sectors and collars.
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.
Annex A
Ms K Thanaletchimi
President
National Trades Union Congress
