National Wages Council
Background & Objectives
The National Wages Council (NWC) was formed in 1972, at a time when Singapore was undergoing a period of rapid industrialisation, which had resulted in rising wage expectations. There were concerns that high wage expectations would lead to serious industrial disputes, which could dampen the investment climate and adversely affect the economic progress of Singapore.
The NWC was thus set up to formulate wage guidelines to be in line with long-term economic growth, so that Singapore’s economic and social development would not be undermined.
Composition
The NWC is a tripartite body comprising representatives from the three social partners – the employers, the trade unions and the Government.
The Council meets every year to deliberate and forge national consensus on wage and wage-related matters. It issues guidelines on these matters every year based on the tripartite consensus reached during the deliberations.
Tripartite Members of the 2021/2022 National Wages Council
| CHAIRMAN | ||
| 1. Mr Peter Seah Lim Huat, Chairman, DBS Bank Ltd | ||
| MEMBERS | ||
| Employer Group | Employee Group | Government Group |
| 2. Dr Robert Yap, President, Singapore National Employers Federation | 9. Ms Mary Liew, President, National Trades Union Congress | 16. Mr Aubeck Kam, Permanent Secretary, Ministry of Manpower |
| 3. Mr Gan Seow Kee, Vice-Chairman, Singapore Business Federation | 10. Mr Desmond Choo, Assistant Secretary-General, National Trades Union Congress | 17. Mr Gabriel Lim, Permanent Secretary, Ministry of Trade & Industry |
| 4. Mr Kuah Boon Wee, Vice President, Singapore Chinese Chamber of Commerce & Industry | 11. Ms Toh Hwee Tin, Director, Industrial Relations, National Trades Union Congress and Executive Secretary, Attractions, Resorts & Entertainment Union and Food, Drinks and Allied Workers’ Union | 18. Ms Teoh Zsin Woon, Deputy Secretary (Transformation), Public Service Division |
| 5. Ms Kohe Hasan, Board Member, Singapore Malay Chamber of Commerce & Industry | 12. Mr Sanjeev Kumar Tiwari, General Secretary, Amalgamated Union of Public Employees | 19. Mr Tan Choon Shian, Chief Executive, Workforce Singapore |
| 6. Mr Alexander C Melchers, Council Member, Singaporean-German Chamber of Industry & Commerce | 13. Mr Richard Tan, General Secretary, United Workers of Electronics & Electrical Industries | 20. Mr Ong Tze Chin, Chief Executive, SkillsFuture Singapore |
| 7. Mr Timothy Lynch, Governor, The American Chamber of Commerce in Singapore | 14. Mr Sazali Bin Zainal, President, Singapore Industrial & Services Employees’ Union | 21. Mr Damian Chan, Executive Vice President, Economic Development Board |
| 8. Mr Manabu Yoshida, Councillor, Japanese Chamber of Commerce & Industry Singapore | 15. Mr Ong Hwee Liang, General Secretary, SIA Engineering Company Engineers and Executives Union | 22. Mr Jayakrishnan s/o Gopalakrishnan, Executive Director, Enterprise Singapore |
| ALTERNATE MEMBERS | ||
| Employer Group | Employee Group | Government Group |
| 23. Mr Sim Gim Guan, Executive Director, Singapore National Employers Federation | 28. Mr Bernard Menon, Executive Director, Migrant Workers Centre | 33. Mr Poon Hong Yuen, Deputy Secretary (Workforce), Ministry of Manpower |
| 24. Mr Ho Meng Kit, Chief Executive Officer, Singapore Business Federation | 29. Ms Sylvia Choo, Director, Unions, National Trades Union Congress and Executive Secretary, Singapore Industrial & Services Employees’ Union | 34. Mr Adrian Chua, Deputy Secretary (Industry), Ministry of Trade & Industry |
| 25. Dr T Chandroo, Chairman, Singapore Indian Chamber of Commerce & Industry | 30. Ms Julie Cheong Ai Hung, President, Food, Drinks and Allied Workers Union | 35. Mr Foo Kok Jwee, Deputy Chief Executive, Workforce Singapore |
| 26. Dr Claus Trenner, Vice President, Singaporean-German Chamber of Industry & Commerce | 31. Mr Asrudin As’ad, President, Singapore Shell Employees’ Union | 36. Mr Tan Kong Hwee, Executive Vice President, Economic Development Board |
| 27. Mr Wee Choo Hua, Governor, The American Chamber of Commerce in Singapore | 32. Mr Raymond Chin, General Secretary, Union of Security Employees | |
Formulation & Use of NWC Guidelines
How does the NWC come up with its guidelines?
In making its recommendations on wage adjustments for the year, the NWC takes into consideration factors such as productivity growth, employment situation, international competitiveness, and economic growth and prospects. Public views are also sought and taken into account when drawing up the guidelines.
A guiding principle established and observed by the NWC is that real wage increases should be in line with productivity growth over the long term. This is to ensure that wage increases are in line with economic growth and sustainable in the long run, so that Singapore’s competitiveness can be preserved and enhanced.
How are the guidelines used?
The NWC wage guidelines are used by both unionised and non-unionised companies. Employers and unions in unionised companies use the guidelines as a framework for wage negotiation based on the circumstances faced by each company. Employers in the non-unionised sector that do not engage in collective bargaining have also relied on the guidelines as a reference point in determining wage increases for their employees.
After the 1985/86 recession, the NWC moved away from issuing quantitative guidelines to qualitative guidelines. This is to allow more flexibility in wage negotiations and to accelerate wage reform so that wage increases are more closely linked to the performance of the economy, company and individual employees. A flexible wage system also enables companies to adjust wage costs more responsively to changing business conditions so as to remain competitive in the global market.
Useful links
Supplementary NWC Guidelines for 2020/2021
Contact us
For enquiries on the NWC, please contact the NWC Secretary through the following email address:
