The National Wages Council has recommended a 5.5 per cent to 7.5 per cent increase in gross monthly wages for lower-wage workers, or a pay bump of at least S$100 to S$120, whichever is higher.

Taking into account the sustained productivity growth over the long term, as well as the improved economic outlook and expected moderation in inflation in 2024, the Council says that employers should reward employees with fair and sustainable wage increases.

Additionally, the council recommended that businesses that have not done well should increase wages at the lower bound of the range. And if business prospects subsequently improve, employers should consider further wage increases.

On this episode of Morning Shot, Sumit Agarwal, Professor of Finance, Economics and Real Estate, NUS Business School shares his insights.

Presented by: Audrey Siek
Produced & Edited by: Yeo Kai Ting (ykaiting@sph.com.sg)
Photo credits: Chua Kee Siong / ST