Government Accepts National Wages Council’s Recommendations for 2016/2017

1. The Government has accepted the recommendations of the National Wages Council (NWC) for 2016/2017.
2. The Government supports the NWC’s focus to press on with restructuring and productivity efforts amidst economic uncertainty. With local employment growth expected to be significantly lower in the medium term compared to the last few years, businesses need to restructure towards higher productivity in order for wage growth to be sustainable and maintain Singapore’s economic competitiveness. The Government will work together with employers and unions towards this goal, including through the Industry Transformation Programme. 
3. As we step up efforts to transform businesses and raise productivity, we must ensure there is adequate support for workers affected by restructuring and economic uncertainty. The Government’s Adapt and Grow package and SkillsFuture initiatives will bolster help for such workers, and support them in upgrading their skills, adapting to changing job demands and taking up new jobs where necessary.
4. The Government supports the NWC’s recommendation for employers to grant a built-in wage increase of $50 to $65 for workers earning a basic monthly salary of up to $1,100. This builds on quantitative recommendations for low-wage workers the past four years, and helps to sustain efforts to improve wage outcomes for low-wage workers.
5. The Government has adopted a multi-pronged approach to help low-wage workers improve their wages. This includes strong funding for skills upgrading through the Workfare Training Support (WTS) Scheme; and sharing of productivity gains through the Inclusive Growth Programme (IGP). The NWC recommendations will complement these efforts with the direct commitment of employers to improve wages. 
6. The Government also recognises that for the NWC recommendations to be effective, buyers of outsourced services will need to play a part. The Government will continue to lead by example, both as an employer and as a service buyer. It will continue to take reference from the NWC guidelines in its annual wage adjustment exercise, and strongly encourage service suppliers to the public sector to adopt NWC recommendations on wage increments for their workers.  
7. Over the years, strong tripartite support has ensured that the NWC’s wage guidelines have been implemented to reward workers for their contributions while at the same time helping our businesses remain resilient and competitive. This balanced approach is essential for the continued progress of our nation and to achieve inclusive growth. The Government is confident that with the commitment of the tripartite partners, the 2016/2017 NWC guidelines will be successfully implemented.