50 Years of NWC

Inaugural 1972 National Wages Council Meeting

In 1972, the National Wages Council was convened as a tripartite advisory body on wage adjustments. Held at the Economic Development Board’s office in the Fullerton Building, the first Council meeting was attended by representatives from the unions, employer groups, and the government.

The inaugural meeting established a key guiding principle - imporant decisions must be made unanimously. This principle continues to be the bedrock of tripartite partnership today.

Flexible Wage System

Singapore’s first post-independence recession in 1985 exposed the shortcomings of a wage system that could not be adjusted quickly in tough economic times.

As a result, many companies resorted to retrenchment. In 1986, the National Wages Council recommended the adoption of a Flexible Wage System, which has the Annual Variable Component as a wage element that could be cut if necessary to save jobs.

In 1999, the Monthly Variable Component was also introduced to reduce wage costs promptly.

Uplifting Lower-Wage Workers

The National Wages Council believes that the fruit of economic growth should be enjoyed by all Singaporeans. Since 2012, the Council has given special consideration to lower-wage workers by recommending quantitative wage increases for them.

In 2021, the council set out the first of its annual guidance on the range of Progressive Wage growth to uplift lower-wage workers.

Emerging Stronger from COVID-19

Staying united, the National Wages Council has helped employers and workers navigate and emerge stronger through the 1985 recession, the 1998 Asian Financial Crisis, 2003 SARS crisis, and the 2008-2009 Global Financial Crisis.

Amid COVID-19, the Council convened four times over 2020 and 2021, and developed guidelines for employers on wages and managing excess manpower in a timely manner.