Singapore asks for 6% to 8% raises for lower-wage workers from December

Singapore asks for 6% to 8% raises for lower-wage workers from December

19 October 2026: Singapore's government has accepted the National Wages Council guidelines for 2026/2027, which ask employers to give lower-wage workers a raise of 6.0% to 8.0%, or at least $135 to $170, whichever is higher, depending on how the business has done. The guidelines cover 1 December 2026 to 30 November 2027 and, for the first time, set out what unprofitable firms should give.

The bands by employer

The guidelines apply to employees earning a gross monthly wage of up to $2,800, about the 20th percentile wage of full-time resident employees in 2025. Gross wage here includes allowances, productivity incentives and overtime and the employee's CPF contribution, but not the Annual Wage Supplement, bonuses or the employer's CPF. The recommended increases are:

Employer's position	Recommended increase
Done well, positive prospects	higher end of 6.0% to 8.0%, or at least $135 to $170
Done well, uncertain prospects	around the middle of 6.0% to 8.0%, or at least $135 to $170
Not done well but profitable	lower end of 6.0% to 8.0%, or at least $120
Not done well and unprofitable (new)	at least $120

For part-time employees the percentage range applies rather than the dollar minimum.

The economic backdrop

The Ministry of Manpower's release says labour productivity rose 3.8% year on year in the first half of 2026 while unit labour cost fell 0.8%, but unevenly: manufacturing and wholesale trade improved, food and beverage and transport did not. Advance estimates put growth at 6.0% in the first three quarters, led by AI-related demand for electronics and precision engineering, and the trade ministry expects 4.5% to 5.5% for the year. The tripartite partners ask employers to take "a positive-leaning posture" on wage increases and variable payments while calibrating them to their own results.

Support and the payroll work

The government has extended the Progressive Wage Credit Scheme to the end of 2028. According to the guidelines document, it co-funds wage increases for resident lower-wage workers at 30% in 2026 and 2027 and 20% in 2028, and from 2027 the average gross monthly increase must be at least $200 to qualify. Payroll and HR teams should map affected staff against the $2,800 threshold, decide which employer category applies, and set the December pay run accordingly; the ministry says up to nine in ten full-time lower-wage workers are already covered by the Progressive Wage Model, the Local Qualifying Salary or the Progressive Wage Mark.

Sources

• Ministry of Manpower: Government accepts the National Wages Council guidelines for 2026/2027, 19 October 2026
• National Wages Council: 2026/2027 guidelines (PDF), 19 October 2026
• Ministry of Manpower: Final 2026-2027 NWC Guidelines (PDF), 19 October 2026