The National Wage Council (NWC) made its recommendations for pay increase in 2011/2012, on 29 April 2011. The key message is summarised below:
Given the strong economic performance in 2010 and growth outlook of between 4% to 6% in 2011, NWC recommends that:
Companies should grant higher total wage increases (built-in and variable payments) that reflect the strength of the economy and the performance and prospects of the company.
Depending on the company situation and taking into account cost competitiveness, companies can make greater use of variable payments to reward workers for their contributions, instead of granting higher built-in wage increases.
In their wage negotiations, companies and unions should take into account the increase in employers’ CPF contribution rate and CPF salary ceiling in September 2011.
These recommendations are intended to be applicable to all employees, which include the management, executives, rank-and-file employees, unionised and non-unionised companies in both public and private sectors.
The Singapore Government has since accepted the proposal put forth by NWC.
Based on earlier news reports, actual salary increments percentage could range from 4 to 5% for industries such as the financial and banking sectors, as they are expected to benefit the most from the economic recovery. The World’s highest paid President will get a 26% pay increase though.
How much was your pay increase? Leave a comment below and share your thoughts with us.