Singapore: Additional Pay for Low-Wage Earners Required

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By Michael Mackey

June 8—Workers earning a basic monthly salary of up to S$1,100 (U.S. $800) will be granted a built-in wage increase of at least S$60 (U.S. $45) for 2015-16, the government of Singapore said.

The increase follows a recommendation made by Singapore's National Wages Council (NWC).

“This makes it clear that there should be continued efforts to improve wage outcomes for low-wage workers,” the Ministry of Manpower said in a May 29 statement accepting the council’s recommendations.

“The NWC guidelines cover the period from July 1, 2015, to June 30, 2016,” an MOM spokesperson told Bloomberg BNA June 3.

The government also expressed support for the NWC’s recommendation that employers and unions work towards restructuring employer portable medical benefits to improve their cost-effectiveness. MediShield Life will provide all employees who are Singapore citizens or permanent residents with basic portable health care insurance beginning Jan. 1, 2016.

To contact the reporter on this story: Michael Mackey in Bangkok at mmackeybangkok@gmail.com

To contact the editor responsible for this story: Molly Ward at mward@bna.com

For more information on Singaporean HR law and regulation, see the Singapore primer.