Productivity push: Improve worker output by redesigning jobs and training workers. This way, wage increases will not outstrip productivity growth and companies can remain competitive.

Realistic pay hikes: Wage increases should be on par with a company's performance and business prospects. Doing so will ensure that pay hikes are affordable and sustainable.

Bonus boon: Make greater use of variable payments such as bonuses to reward workers. Companies which do well should give bigger bonuses.

Inflation bonus: Help workers cope with higher inflation this year through a one-off special lump-sum payment, with heavier weightage for low-wage workers.

Rehire retirees: Let employees work beyond the retirement age of 62 by adopting re-employment policies now, ahead of the re-employment law that is due by 2012.

Woo women: Employers in need of workers should attract more housewives and retirees back to work.

CPF concerns: Step up efforts to help contract workers and low-wage workers get on the CPF scheme.

Boost for low-income: Give low-wage workers higher wage increases.

Better work conditions: Companies which outsource should adopt the Tripartite Advisory on Responsible Outsourcing so workers will enjoy better employment conditions.

Enhance wage flexibility: Build a more responsive wage system so companies can make quick wage changes in line with business conditions.