Employee Skilling
Singapore accepts NWC 2025–2026 guidelines, urges fair wage growth and reskilling push
The Government urged employers to offer fair and sustainable wage increases aligned with long-term productivity growth and economic conditions. It also encouraged businesses to accelerate transformation and workers to keep reskilling to stay ahead of rapid technological changes like AI.
The Singapore Government has accepted the National Wages Council (NWC) Guidelines for 2025–2026, which outline fair and sustainable wage growth strategies amid a moderating global economy.
The NWC, which met from September to October 2025, developed the wage framework covering the period from 1 December 2025 to 30 November 2026.
The guidelines emphasize productivity-driven wage increases, business transformation, and continued support for lower-wage workers.
According to the Government, Singapore’s economy grew 2.9% year-on-year in the third quarter of 2025, easing from 4.5% in the previous quarter. Growth is expected to moderate further in the coming months, affected by weaker global demand and ongoing US tariffs.
The Ministry of Trade and Industry (MTI) projects full-year GDP growth between 1.5% and 2.5%.
“At the same time, significant uncertainties remain in the global economy, with the risks tilted to the downside. These include the possibility of further tariff actions leading to a renewed spike in economic uncertainty and potential escalations in geopolitical tensions,” the Ministry of Manpower (MOM) stated.
The labour market remained resilient in the first half of 2025, with employment rising among both residents and non-residents. Unemployment and retrenchments stayed low, and real incomes increased. Productivity, measured by real value-added per actual hour worked, rose 2.9% year-on-year, while overall unit labour cost fell slightly.
The Government also called on employers to reward employees fairly and adopt the Flexible Wage System (FWS) to maintain wage flexibility, allowing firms to manage costs during downturns and retain talent in upturns.
“The Government stands with tripartite partners to call on employers to reward employees with wage increases and variable payments that are fair and sustainable. Employers should take into account productivity growth over the longer term and the broader economic outlook when assessing wage adjustments this year,” it stated.
It added, “To ensure sustainable wage growth, the Government calls on employers to press on with efforts to transform their businesses and workforce, and employees to continue reskilling and upskilling. This can help businesses and workers keep up with rapid technological changes in areas such as Artificial Intelligence (AI). Employers and employees can tap on various enterprise grants, as well as jobs and skills programmes provided by Government agencies.”
A continued focus will also be placed on uplifting lower-wage workers, with updates to the Occupational Progressive Wage (OPW) job ladders and wage schedules for 2026–2027, covering about 57,600 full-time workers in administrative and driver roles.
“Eligible employers will automatically receive co-funding support for wage increases for lower-wage workers under the Progressive Wage Credit Scheme until 2026. This will alleviate cost pressures while enabling businesses to drive transformation efforts to enhance productivity and raise wages sustainably.”
The Government reaffirmed its commitment to work closely with tripartite partners to promote fair, inclusive, and sustainable wage growth, while ensuring Singapore’s economy remains competitive and future-ready.
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