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Government Accepts National Wages Council's Recommendations For 2011/2012

Employment practices
29 April 2011

  1. The Government has accepted the National Wages Council's (NWC) recommendations for 2011/2012.
  2. The NWC has recommended that workers be rewarded with higher total wage increases this year in line with the strength of the Singapore economy, and the performance and prospects of companies. This is possible because of Singapore's exceptional economic growth of 14.5% in 2010, as well as the healthy pace of growth in the first quarter of 2011 estimated at 8.5% year-on-year and the projected growth of between 4% and 6% for the year 2011. We must therefore ensure sustainable economic growth so that workers could continue to enjoy wage increases and bonuses.
  3. Unemployment rate dropped to 2.2% (overall) in 2010, compared to 3% in 2009. In March 2011, it improved further to a seasonally adjusted 1.9%, the lowest in 3 years. Given the tight labour market, we need to calibrate our policies carefully to avoid derailing economic growth.
  4. We must continue to push for productivity improvements, focus on continuing education and training (CET) and moderate our reliance on foreign workforce to ensure that our growth is sustainable. The Government therefore fully supports the NWC's call to raise productivity for wage increases to be sustainable.
  5. Companies and unions/workers are strongly encouraged to take advantage of the various government schemes such as the enhanced National Productivity Fund and the Productivity and Innovation Credit to restructure businesses for higher productivity, as well as leverage on the CET infrastructure and training programmes to upgrade skills and enhance employability.
  6. The Government notes that the NWC has taken into account in its deliberations the $3.2 billion 'Grow & Share' package in Budget 2011. Lower- and middle-income households will receive substantial benefits through the 'Grow & Share' package, much more than the increase in their cost of living this year.
  7. The Government is confident that with strong tripartite co-operation, the guidelines will be successfully implemented to help companies raise productivity and enhance their competitiveness. At the same time, workers can continue to be rewarded with sustainable wage increases and bonuses for their performance and contributions.