Overview

The NWC is a tripartite body comprising representatives from the three social partners – Employers, the Labour Movement 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.

NWC’s terms of reference

• To assist in the formulation of general guidelines on wage policy
• To recommend necessary adjustments in wage structure, with a view to developing a coherent wage system consistent with long-term economic and social development
• To advise on desirable incentive systems for the promotion of operational efficiency and productivity in various enterprises

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 who do not engage in collective bargaining have also relied on the guidelines as a reference point in determining wage increases for their employees.