World’s second-richest country recommends 8% salary hike for workers

1. Singapore Airlines, Scoot offer discounts on 380,000 air tickets to Asia, Europe 2. World’s second most visited country records 11.5 million international air passengers in September 3. Arugam Bay surpasses Boracay, Nusa Dua to be named Asia’s most beautiful beach 4. Indonesia’s 3 richest tycoons lose $5.9B in wealth amid record stock rout 5. Queen Suthida brings royal elegance to women’s hockey gala in Japan 6. 3 Asian billionaires among world’s 5 biggest single-day weath losers 7. Southeast Asia’s 2nd largest economy welcomes 13 million tourists in nine months 8. Australia’s biggest airport project in decades opens with few flights scheduled 9. Japan coach Moriyasu turns down Malaysia, eyes move to Europe 10. Singapore billionaire Forrest Li’s Sea plans new cloud business, IPO for financial services arm –> World’s second-richest country recommends 8% salary hike for workers By Dat Nguyen  &nbspOctober 20, 2026 | 06:58 pm PT Get VnExpress first in Google Search See more of the news you trust. Make VnExpress a preferred source to prioritise our updates in your Google search results Workers earning up to $2,800 a month in Singapore should receive a pay increase of 6% to 8%, or at least SGD120 (US$94), according to the latest recommendations to businesses by the National Wages Council (NWC). In its annual guidelines on wages and employment released on Monday, the council said employers whose businesses have performed well should raise salaries by 6% to 8%, or at least SGD135–170, whichever is higher, according to The Straits Times.

Companies that have performed poorly but remain profitable should give lower-wage employees a built-in wage increase at the lower end of the 6% to 8% range, or at least SGD120, whichever is higher.

Businesses that have performed poorly and are unprofitable should still provide an increase of at least SGD120. The council introduced this new category to acknowledge the economic challenges facing employers.

Speaking at a press conference at the Ministry of Manpower on Monday, the ministry’s permanent secretary, Stanley Loh, said about a quarter of employers followed the NWC’s 2025 guidelines, which recommended increases of 5.5% to 7.5% for lower-wage workers.

About 60% of employers raised wages in 2025, although their increases fell below the levels recommended by the council.

People walk out during lunch time at the financial business district of Raffles Place in Singapore on September 9, 2026. Photo by AFP

Singapore National Employers Federation president Kuah Boon Wee said many companies reported difficulties in providing the proposed 5.5% to 7.5% increases in 2025.

“That’s why we came up with a category that hopefully will allow the percentage of adoption to go up,” Kuah said, adding that about 20% of the resident workforce earns $2,800 or less a month.

For workers more broadly, the NWC recommended that companies with strong performance reward employees through built-in wage increases and variable payments, including one-time payments.

Companies that have performed poorly, however, can “exercise wage restraint, with management leading by example.”

The guidelines cover Dec. 1, 2026, through Nov. 30, 2027, and apply to all employees at unionized and nonunionized companies across the public and private sectors. The government has accepted the recommendations, which are not mandatory.

The council, comprising representatives from the government, employers and the labor movement, met between August and October 2026 to develop the guidelines.

The council said outward-oriented segments and sectors connected to AI technology cycle would support gross domestic product growth for the remainder of the year, despite ongoing weakness in sectors affected by Middle East supply disruptions.

Kuah added: “Notably, the food and beverage is a sector that has been struggling. That’s why for this year, achieving a balance is important because no employers are the same.”

Melissa Ng, executive secretary of the Food, Drinks and Allied Workers Union, said F&B businesses face cost pressures, yet workers across roles have contributed to the sector’s resilience, according to The Business Times.

“We welcome the stronger wage recommendations for lower-wage workers, which will provide an important uplift for many workers in the sector,” she said.

Singapore ranks second among the richest countries in the world in 2025 based on GDP per capita, after adjusting for price differences, according to The Economist.