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
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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.

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