News analysis

Temporary wage cuts: Enduring short-term pain to protect long-term jobs

The resident unemployment rate rose to 4.5 per cent in August. ST PHOTO: KUA CHEE SIONG
New: Gift this subscriber-only story to your friends and family

SINGAPORE - Less than seven months back, the National Wages Council (NWC) had recommended that employers affected by the Covid-19 pandemic first reduce non-wage costs and tap government help before they move to cut their workers' wages.

On Friday (Oct 16), the council signalled that companies could cut their employees' wages temporarily in order to minimise retrenchments.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.