SINGAPORE: The National Wages Council (
NWC) has proposed that employers give low-wage workers a built-in wage increase of at least S$60. This applies to workers earning up to S$1,000 a month.
In 2012, the council recommended a built-in wage increase of at least S$50 for this group of workers. Eight in 10 unionised companies heeded the call. However, only three in 10 non-unionised ones did the same as of December 2012.
The council though said it is a "good start" in helping to uplift the pay of low wage workers.
NWC chairman Professor Lim Pin said the quantum of at least S$60 was carefully considered by all parties.
He said: "I think that's the kind of target which we think is a fair target and achievable. On the one hand, we urge the employers to do more. On the other hand, it has to be achievable target and not something wild!"
Companies that are doing well are also urged to grant an additional one-off lump sum payment to help low wage workers cope with the cost of living.
In releasing its recommendations on Friday, the council noted that the income growth of low-wage workers still lagged behind the rest of the workforce.
Contract workers were also mentioned. The council called on employers and service buyers to incorporate the recommendations into their out-sourced service contracts. This also applies to older workers who are re-employed.
In granting wage increases, the council stressed that it must go in line with productivity gains. Otherwise, the council said, any wage increase is not sustainable and it would be detrimental to Singapore's economic competitiveness.
Thus, the council recommends that real wage increases should correspond with productivity growth over the long-term.
The council also urges employers to share productivity gains fairly with workers. This includes giving built-in wage increases to workers taking into account the companies' business performance and prospects.
The recommendations cover the period from July 1, 2013 to June 30, 2014.
The government has accepted the recommendations.
- CNA/ac
BREAKING NEWS: NWC proposes wage increase of at least S$60 for low-wage workers
