On 11 November 2025, Singapore’s Ministry of Manpower (MOM) publicly accepted the NWC’s annual recommendations for wage growth, employment practices, and workforce transformation for the period 1 December 2025 – 30 November 2026.
The 2025/2026 guidelines come at a time when Singapore’s economy and labour market show both resilience and warning signs, real income and productivity are rising, but business sentiment and job vacancy growth are beginning to soften.
The NWC’s new recommendations aim to strike a balance between fair, sustainable wage increases, support for lower-wage workers, and productivity-driven business strategies.
Below are the key takeaways, and what they mean for your business or workforce.
NWC 2025/2026, Key Points & Recommendations
1. Wage Increase for Lower-Wage Workers (LWWs)
- For workers earning up to S$2,700 gross per month, NWC recommends a built-in wage increase of 5.5 % to 7.5 %, or a minimum increase of S$105 to S$125, whichever is higher. Employers whose business prospects are good are encouraged to apply the higher end of the range. Companies with uncertain outlooks are advised to still offer at least the minimum increase, but may exercise moderation, while considering further increases if business improves.
This move reflects NWC’s intent to narrow the wage gap between lower-wage workers and median-wage earners, ensuring that wage growth remains inclusive even during economic headwinds.
2. Emphasis on Fair & Sustainable Wage Growth with Flexibility
- NWC urges employers to adopt the Flexible Wage System (FWS), combining fixed pay with variable components (monthly variable pay and annual bonuses or one-off payments). This helps firms adjust wages according to business performance, cushioning the impact of economic downturns while rewarding gains during recovery.
- The idea is to link wages to productivity, contribution, and business outlook, rather than treating pay raises as a fixed obligation. This approach supports business sustainability while still rewarding employees fairly.
3. Updates to Progressive Wage / Occupational Progressive Wage (OPW) for Admins, Drivers
- Under the updated guidelines, baseline wage floors for certain occupations will be raised. For example: administrative-assistants (resident full-time) under OPW may see wage adjustments, as part of a phased update starting July 2026.
- Drivers and other OPW-covered roles will also have updated job-ladders and clearer wage pathways, reflecting evolving work demands (e.g. digital transformation, expanded responsibilities).
These updates aim to ensure that wage progression keeps pace with inflation, skills, productivity and evolving job scopes, especially in roles historically occupied by lower-wage workers.
4. Call for Upskilling, Reskilling, and Workforce Transformation
- The NWC emphasises that sustained wage growth should align with enhancements in productivity, which directly ties to reskilling, upskilling, and job redesign.
- Employers are encouraged to reshape job roles, integrate technology, and improve workforce capabilities, enabling workers to earn more while helping businesses stay competitive and resilient.
5. Macro Context: Balanced Economic Outlook & Labour Market Trends
- In the first half of 2025, labour productivity (real value-added per hour worked) rose by 2.9%, while real income grew 3.2%, indicating healthy wage growth over productivity.
- However, the labour market shows signs of softening: job vacancies are declining, and business sentiment is less optimistic, prompting NWC to recommend wage flexibility rather than fixed hikes across the board.
The NWC’s guidelines thus aim to balance workers’ welfare with employers’ viability, against uncertain global economic conditions.
What NWC 2025/2026 Means for Employers, HR, and Business Leaders
If you manage a company, oversee HR, or run a business (SME or larger enterprise), this year’s NWC guidelines should affect how you plan wages, budgeting, and workforce management:
- Budget planning: Factor in potential built-in wage increases (especially for lower-wage staff), plus variable pay components if using FWS.
- Wage policy update: Review your current wage structure, job classifications, especially for admin/driver/OPW-covered roles, and update salary bands accordingly.
- Adopt Flexible Wage System: If you haven’t yet, consider implementing MVC/AVC components to buffer against economic volatility.
- Invest in training & skills development: Upskilling staff can justify wage increases, improve productivity, and future-proof your workforce.
- Compliance & fairness: Align wage increases with NWC recommendations to demonstrate fair employment practices, improving retention, worker morale, and business reputation.
For HR teams, this may also mean revisiting performance review cycles, budgeting for bonuses or variable pay, and aligning compensation strategy with business performance and future outlook.
What Employees & Workers Should Know
- If you earn S$2,700 or less/month, you may be eligible for a pay bump (5.5–7.5% or +S$105–125), depending on your employer’s performance and business outlook.
- Even though NWC guidelines are not legally binding, they serve as a strong reference for fair wage practices and often influence wage negotiations, collective bargaining, and employment standards.
- For admin, driver, or other OPW roles, updated wage floors may come into effect in mid-2026, potentially improving job security and income.
- If your employer uses a flexible wage approach, salary increases and variable pay will likely depend more on company performance and productivity, so demonstrating performance and contributing to company goals may help.
The Bigger Picture: Why NWC 2025/2026 Matters
The new guidelines underscore a broader shift in Singapore’s labour policy, from static wage hikes to wage policies embedded in productivity, skills development, and business sustainability.
This aligns with trends across many economies: rising living costs, global economic uncertainty, technological disruption, and evolving job scopes demand a more dynamic, fair, and future-proof approach to compensation.
By recommending both wage increases and structural transformations (FWS, reskilling, OPW updates), NWC aims to build a more resilient, competitive, and inclusive workforce, one that protects lower-wage workers while enabling businesses to stay agile.
In short: it’s a call for shared prosperity, where employees benefit from growth, and employers get a more skilled, productive workforce.
Visit JWC Consultancy now to get expert guidance and future-proof your wage strategy under the new NWC framework.