Singapore's Lower-Wage Workers Could Get 6% to 8% Pay Rises, the Highest Since 2021

Lower-wage workers in Singapore earning a gross monthly wage of up to $2,800 could receive built-in wage increases of 6% to 8% under the National Wages Council (NWC) guidelines for 2026/2027, which the Government accepted on 19 October 2026. The range is the highest since quantitative wage guidelines for lower-wage workers were introduced in 2021, according to the National Trades Union Congress (NTUC), and the guidelines cover the period from 1 December 2026 to 30 November 2027. For Metaintro readers working as cleaners, retail assistants, food service crew, drivers or administrators in Singapore, this guide explains which of the four employer tiers decides your raise, how the dollar floor works, what counts as your wage, and why the guidelines are a recommendation rather than a legal minimum. All dollar figures below are Singapore dollars.

What Exactly Did the National Wages Council Recommend?

The National Wages Council is a tripartite body of employer, employee and Government representatives, and it convened from August to October 2026 to set wage guidelines for the year ahead. The Government has accepted the 2026/2027 guidelines, and the Government will work with the labour movement, SNEF and trade associations and chambers to encourage employers to adopt the guidelines for lower-wage workers.

For lower-wage workers the council set two levers at once, a percentage range for wage growth and a minimum dollar quantum increase. Employers that did well and have positive prospects should give a built-in wage increase at the higher end of 6.0 to 8.0% of gross monthly wage or a wage increase of at least $135 to $170, whichever is higher.

The council also set out a general posture for every worker, not just the lower paid. It asks employers to take a positive-leaning approach and reward employees with wage increases that are fair and sustainable, with built-in raises and variable payments such as bonuses where business has gone well. The council is also urging firms to fully adopt the flexible wage system, with annual and monthly variable pay components, so that wages can be adjusted to business conditions.

The wider guidelines apply to all employees in unionised and non-unionised firms and in both public and private sectors, including PMETs, rank-and-file staff, re-employed employees and part-timers.

Which of the Four Employer Tiers Decides Your Raise?

Your raise depends on how your employer has done and what it expects next. The four tiers for workers earning up to S$2,800 a month are set out below.

• Done well, positive prospects. A built-in increase at the higher end of 6% to 8%, or at least S$135 to S$170, whichever is higher.
• Done well, uncertain prospects. A built-in increase around the middle of 6% to 8%, or at least S$135 to S$170, whichever is higher.
• Not done well, still profitable. A built-in increase at the lower end of 6% to 8%, or at least S$120, whichever is higher.
• Not done well, unprofitable. A built-in increase of at least S$120.

Employers that did particularly well should consider giving wage increases above the recommended levels. If business prospects improve later, firms in the two weaker tiers should review wages and consider further wage increases for their lower-wage workers.

The council also defines what counts as unprofitable. An establishment is unprofitable if their total expenses exceed their total income (including operating and non-operating income), so a firm that merely had a weaker year but still made money sits in the third tier, not the fourth.

The guidelines recognise that employers have different capacities to raise wages for their lower-wage workers, depending on their business performance and outlook, NWC chairman Hsieh Fu Hua said during a press conference, according to the AsiaOne report.

How Does the Dollar Floor Work for the Lowest-Paid Workers?

Because some lower-wage workers earn comparatively less, the council recommends minimum dollar quantum ranges, which correspond to higher percentage wage increases, for the lowest-paid workers to receive a meaningful raise.

In practice, a worker at a firm in the top tier should get the larger of the two figures, either the higher end of 6.0 to 8.0% of gross monthly wage or $135 to $170, whichever is higher. Part-timers are treated differently. For part-time employees, the percentage range of wage growth for LWWs, but not the minimum dollar quantum, will apply.

When setting the range, the council took into account historical growth in the median income of 4.0% a year between 2016 and 2025.

What Counts as Your Gross Monthly Wage?

The $2,800 line is measured on gross monthly wage, which is wider than basic pay. It includes basic monthly wage (comprising the monthly fixed component and the monthly variable component) and gross wage components such as allowances (including travel, food, housing), productivity incentive payments, and overtime payments.

Gross monthly wage excludes Annual Wage Supplement and bonuses (which are usually paid on an annual basis), and it includes employee CPF contribution but not the employer's share, which makes it a gross pay figure rather than take-home pay.

The threshold sits near the bottom fifth of full-time employed residents, as the $2,800 line corresponds approximately to the 20th percentile wage level of full-time employed residents in 2025. If your overtime and allowances push you over the line, the specific lower-wage tiers no longer apply to you, though the general call for fair raises still does, since the guidelines apply to all employees.

How Is This Year Different From the 2025/2026 Guidelines?

The range, the ceiling and the floors all moved up from the 2025/2026 guidelines. Last year the council recommended pay increases of 5.5% to 7.5%, or at least $105 to $125, whichever is higher, for workers earning up to $2,700 a month, and those guidelines took effect on 1 December 2025. This year the range is 6% to 8% for workers earning up to $2,800.

Under last year's guidelines, employers that had not done well were asked only for a built-in wage increase at the lower end of last year's percentage range, with no separate dollar figure in that line. This year that group is split in two, and both halves carry a floor of at least $120.

The council explained both moves. It saw greater scope for employers who have done well to share their gains with LWWs through higher wage increments, and it created the new category because there is a subset of employers that did not do well and are unprofitable.

Last year's threshold of $2,700 corresponds approximately to the 20th percentile wage level of full-time employed residents in 2024. The 20th percentile income level of full-time employed residents, excluding employer CPF contributions, was $2,708 in June 2024.

Is Your Employer Legally Required to Pay It?

No. The NWC figures are recommendations rather than mandatory wage increases. The mandatory rules sit elsewhere, in the Progressive Wage Model (PWM) and the Local Qualifying Salary (LQS), which set mandatory wage requirements for employers covered by the respective schemes, while the NWC guidelines recommend annual raises.

Regardless of profitability, firms covered by the relevant Sectoral or Occupational PWMs must comply with the applicable PWM wage requirements, and firms employing foreign workers must also meet the LQS for local staff outside the PWMs. Together, the PWM, LQS and Progressive Wage Mark scheme reach up to nine in 10 full-time lower-wage workers.

The guidelines are aimed at that gap. Some lower-wage workers may not be covered by PWM or LQS, such as those working for small businesses that do not hire foreign workers and are outside PWM-covered sectors, and the NWC figures are aimed at encouraging those employers too.

Permanent Secretary for Manpower Stanley Loh said slightly more than a quarter of employers met last year's wage recommendations for lower-wage workers, down from an adoption rate that had previously exceeded 70% when the guidelines covered a smaller group. That does not mean the rest gave nothing, since more than 60% of these employers had still raised wages, just by less than the recommended levels.

How Does the Government Help Employers Pay for It?

The main tool is the Progressive Wage Credit Scheme, which the Government recently extended until end 2028. It co-funds wage increases for Singapore Citizen and Permanent Resident employees, and employers do not need to apply for the PWCS.

The scheme will co-fund wage increases for resident lower-wage workers by 30% in 2026 and 2027, and by 20% in 2028, as also set out on the IRAS scheme page, with support for raises up to a $3,000 gross monthly wage ceiling.

The average gross monthly wage increase must be at least $100 in qualifying years 2022 to 2026, and at least $200 in qualifying years 2027 and 2028 to be eligible.

To narrow the wage gap between LWWs and the median wage worker over this decade, wages of LWWs must consistently grow faster than the median wage, according to the full NWC guidelines.

Why Did the Council Raise the Range This Year?

The economy did better than expected. Singapore grew by 6.0% y-o-y in the first three quarters of 2026 on advance estimates, and the Ministry of Energy, Trade and Industry projects 4.5% to 5.5% for the whole of 2026. Labour productivity rose by 3.8% y-o-y in the first half of 2026, while unit labour cost fell by 0.8%.

Growth was uneven across sectors and segments. Growth was led by sectors riding robust global Artificial Intelligence (AI)-related demand, such as the electronics and precision engineering clusters, while the food and beverage services sector contracted. In view of the uneven growth across key LWW hiring sectors, the NWC recognises the need for greater flexibility this year.

Retrenchments also rose in the second quarter of 2026, mostly in outward-oriented sectors, and workers hit by that wave can check what retrenched workers in Singapore are owed. Hiring expectations improved, with the share of firms expecting to hire in the next three months rising from 40.6% in May 2026 to 43.9% in June 2026.

How Did Employers and Unions React?

The Singapore National Employers Federation welcomed the guidelines and called the new fourth category an important addition, because some businesses remain unprofitable and have limited capacity to raise wages. Its president Kuah Boon Wee said the guidelines recognise the reality of a K-shaped economy. The federation plans to step up outreach efforts, including employer briefings and industry engagements, to encourage adoption.

NTUC urged employers to adopt the guidelines so that all workers, including professionals, managers and executives, share in productivity gains. NTUC president K Thanaletchimi called on employers to provide protected training time so workers can attend courses without relying solely on their personal time.

The share of employees receiving structured training fell from 52.6% in 2024 to 48.1% in 2025.

What This Means for Lower-Wage Workers, and What Should You Do Next?

The guidelines give you a number to point to, but not a right to enforce. Only slightly more than a quarter of employers met last year's recommendations for lower-wage workers, so knowing your tier and raising it with your employer or union is the practical step.

• Work out your gross monthly wage. Add allowances, overtime and productivity incentives, as the NWC definition does, to see whether you earn up to $2,800.
• Find your tier. Ask whether your employer did well and whether it is profitable, since the four tiers range from at least S$120 to 6% to 8% or at least S$135 to S$170, whichever is higher.
• Check your mandatory ladder first. Many cleaning, security, landscape, retail, food services, waste management, administrator and driver jobs fall under PWM moves listed in the NWC guidelines, and those wage rules apply whatever your employer's results.
• Know the window. The guidelines cover the period from 1 December 2026 to 30 November 2027.
• Use your union. Employers are asked to share information with unions and to work with NTUC's affiliated unions when applying the guidelines.
• Ask for training time. NTUC president K Thanaletchimi called for protected training time, and the council asks workers to build AI-relevant skills to access opportunities across firms and sectors.

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People Also Asked

Q: How much is the new NWC pay rise for lower-wage workers?

A: Employers that did well are asked for 6% to 8%, or at least S$135 to S$170, whichever is higher, profitable firms that did not do well for the lower end of 6% to 8%, or at least S$120, and unprofitable firms for at least S$120.

Q: Who counts as a lower-wage worker under the NWC guidelines?

A: The lower-wage recommendations cover employees earning a gross monthly wage of up to $2,800, a line that corresponds approximately to the 20th percentile wage level of full-time employed residents in 2025.

Q: When do the new NWC guidelines take effect?

A: The guidelines cover the period from 1 December 2026 to 30 November 2027, and the Government accepted them on 19 October 2026.

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