Wage increments shaped by market forces, not just guidelines: Employers and labour watchers

Some employers said competition for workers in their industries pushes up the market rate for pay rises. ST PHOTO: KUA CHEE SIONG
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SINGAPORE – The confluence of a fall in labour productivity, financial challenges and a softer demand outlook could make it a stretch for some employers to implement the range of pay increases recommended by the National Wages Council (NWC) for lower-wage workers.

For example, those in the manufacturing sector may find it difficult to implement the proposed increment range due to these reasons, said Mr Melvin Tan, vice-president and honorary secretary of the Singapore Manufacturing Federation.

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