Government backs wage increases, skills upgrade proposals

Recommendations put forward by the National Wages Council received the official seal of approval.

In a release, the Ministry of Manpower (MoM) said it supports the move for built-in wage increases this year, with higher with higher increases aimed for low-wage workers.

"The NWC has recommended that real wages should increase in line with productivity growth over the long term to enable our workers to benefit from their share of productivity improvements while keeping our companies competitive. The Government supports this guideline, and urges companies and unions to work together to raise productivity so that real wages can continue to grow in a sustainable manner," said MoM.

"Companies should take full advantage of the Government grants and incentives for productivity improvement, which were enhanced in Budget 2012. Doing so will help them upgrade their operations to cope with the reality of a tight job market and enable them to stay competitive for the long haul. Companies should also provide their workers their fair share of productivity gains," it said.

"The Government supports the NWC's call for both companies and employees to invest in continuous training and skills upgrading, so as to stay relevant and enhance their future prospects. The Government will continue to provide strong support for these efforts," it added.

"The Government will also take the lead in implementing the Tripartite Advisory on Best Sourcing Practices, so as to help uplift lower wage workers in outsourced services. The Government is confident that with our strong tripartite cooperation, the NWC guidelines will be successfully implemented to reward workers for their contributions, while at the same time help our companies remain resilient and competitive. These efforts are essential to achieving inclusive growth, with all Singaporeans being able to share in the nation's progress," it said further.