Government Accepts the National Wages Council Guidelines for 20212022
The Government accepts the National Wages Council (NWC) 2021/2022 Guidelines.
2. The labour market improved in the first three quarters of 2021 as resident employment grew and resident unemployment continued to ease. Retrenchments also fell to pre-COVID-19 levels seen in 2018 and 2019. However, the labour market recovery has been uneven across sectors, and is expected to remain so, in line with the economic outlook for the various sectors.
3. With the economy on track towards recovery, the Government stands with tripartite partners to call on employers that have recovered or are recovering to ease exceptional wage policies put in place earlier.
4. COVID-19 has underscored the need for greater resilience, including in our wage systems. The Government therefore encourages all employers to implement the Flexible Wage System (FWS). To support employers in this process, the NWC has published a FWS Guidebook which is available on MOM’s website1. Employers can also approach tripartite partners and Tripartite Alliance for Fair & Progressive Employment Practices for advice.
5. The Government accepted the Tripartite Workgroup on Lower-Wage Workers (TWG-LWW)’s recommendations2 for the NWC to set out annual guidance on the range of Progressive Wage growth for lower-wage workers. The NWC’s recommended Progressive Wage growth is sufficiently balanced, and seeks to ensure meaningful wage growth for lower-wage workers, while recognising that different sectors are at different stages of economic recovery. Taking in feedback from various sectors, it has thus recommended a differentiated approach towards wage increases for lower-wage workers, with a more moderated set of recommendations for employers still facing economic headwinds. As announced at the National Day Rally 2021, the Government too will do its part to uplift lower-wage workers, through transitional support to help employers absorb part of the additional wage costs.
6. The high level of trust and collaboration between tripartite partners have helped many employers and workers to weather through COVID-19 together. As our economy recovers and the pace of transformation accelerates, our strong tripartite foundation and partnership will enable us to secure our recovery, uplift our lower-wage workers, and build an inclusive society.