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NWC Guidelines 2026/2027: What Employers Must Do From 1 December 2026
Short answer: The NWC guidelines 2026/2027 run from 1 December 2026 to 30 November 2027. For workers earning up to S$2,800 a month, they recommend a built-in increase of 6.0% to 8.0% or a minimum dollar amount, depending on how the employer has performed. The Government accepted them on 19 October 2026. They cover all employees, not only lower-wage workers.
Key facts at a glance
- Period covered: 1 December 2026 to 30 November 2027; the Government accepted the guidelines on 19 October 2026 (per MOM, as at 26 October 2026).
- Lower-wage worker guideline applies to gross monthly wages up to S$2,800, with a recommended built-in increase of 6.0% to 8.0% for employers who have done well.
- A new category for employers who have not done well and are unprofitable: a built-in increase of at least S$120.
- Progressive Wage Model wage floors stay mandatory whatever the employer’s business performance.
- Progressive Wage Credit Scheme co-funds wage increases for resident lower-wage workers at 30% in 2026 and 2027 and 20% in 2028; from 2027 the average gross monthly increase must be at least S$200 to qualify.
- Employer CPF contribution rates for workers above 55 to 65 rise by 0.5 percentage points on 1 January 2027, which employers may weigh when setting increases.
This article is general information only and is not legal, tax or immigration advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.
What are the NWC guidelines 2026/2027?
The National Wages Council (NWC) is a tripartite body of employers, unions and the Government. It met from August to October 2026 and set wage guidelines for 1 December 2026 to 30 November 2027, which the Government accepted on 19 October 2026 (MOM press release).
The guidelines are recommendations, not statute. They serve as a reference point for wage discussions and for Progressive Wage Model (PWM) clusters. The NWC asked employers to take a positive-leaning approach to wage increases and variable payments, while calibrating to business performance and prospects.
What increase should lower-wage workers receive?
For employees earning a gross monthly wage up to S$2,800, the NWC recommends a built-in increase that depends on the employer’s performance and prospects. Gross monthly wage includes basic pay, allowances, productivity incentives and overtime, and excludes the Annual Wage Supplement and bonuses. It includes employee CPF contributions but excludes employer CPF contributions.
| Employer category | Guideline for lower-wage workers (per NWC, as at 19 October 2026) |
|---|---|
| Done well and positive business prospects | Increase at the higher end of 6.0% to 8.0%, or at least S$135 to S$170, whichever is higher |
| Done well but uncertain business prospects | Increase around the middle of 6.0% to 8.0%, or at least S$135 to S$170, whichever is higher |
| Not done well but remain profitable | Increase at the lower end of 6.0% to 8.0%, or at least S$120, whichever is higher |
| Not done well and unprofitable | Increase of at least S$120 |
The NWC described the percentage range and the dollar minimums as higher than last year’s, and created the fourth category to give firms under financial strain a lower floor. An establishment counts as unprofitable if its total expenses exceed its total income, including operating and non-operating income. For part-time employees, the percentage range applies but the minimum dollar amount does not.
What does that look like at S$2,000 and S$2,800?
The percentage range gives a clear dollar band at each wage level. The guidelines state the dollar minimum as a range (S$135 to S$170) without a wage-by-wage schedule in the text we read, so confirm the figure for your lowest-paid staff against the MOM infographic before fixing letters.
| Gross monthly wage | 6.0% | About 7.0% (middle) | 8.0% |
|---|---|---|---|
| S$2,000 | S$120 | S$140 | S$160 |
| S$2,800 | S$168 | S$196 | S$224 |
These figures are our arithmetic on the published percentage range, not an MOM table. A firm in the “not done well but profitable” category would target the lower end, so S$120 at S$2,000 and S$168 at S$2,800, or the S$120 floor if that is higher.
Do the guidelines apply to foreign workers and higher earners?
Yes, the guidelines apply to all employees in unionised and non-unionised firms, in both the public and private sectors. This includes professionals, managers, executives, technicians, rank-and-file staff, re-employed employees, and full-time and part-time workers.
The S$2,800 lower-wage threshold may include some Work Permit holders, particularly in services, F&B, retail and cleaning, so check your payroll rather than assuming. For employees earning above that, the general guidance applies: employers who have done well and have positive prospects should reward staff with built-in increases and variable payments, while firms with uncertain prospects may moderate built-in increases and lean on variable pay. If you employ Work Permit or S Pass holders, see our guides to the Progressive Wage Model and work pass compliance and to retail sector hiring.
How do the guidelines sit beside PWM and the Local Qualifying Salary?
The NWC guideline is a recommendation, while the Progressive Wage Model and the Local Qualifying Salary (LQS) are mandatory requirements. The guidelines say that, regardless of business prospects and profitability, firms covered by the relevant sectoral or occupational PWMs must comply with the applicable PWM wage requirements. Firms employing foreign workers must also meet the LQS requirement for local employees not covered under the PWMs.
The NWC also noted that PWM, LQS and the Progressive Wage Mark accreditation scheme together benefit up to 9 in 10 full-time lower-wage workers. The lower-wage guideline serves as a reference for PWM tripartite clusters when they set sector wage requirements. For a current example of how a PWM schedule bites, see our retail PWM analysis and our note on the occupational progressive wages for administrators and drivers.
What is the Progressive Wage Credit Scheme support?
The Government recently extended the Progressive Wage Credit Scheme (PWCS) to end 2028. Per the NWC guidelines, it co-funds wage increases for resident lower-wage workers by 30% in 2026 and 2027 and by 20% in 2028, and from 2027 the average gross monthly wage increase must be at least S$200 to be eligible.
That S$200 condition matters for budgeting. An increase of S$140 may satisfy the NWC guideline but fall short of the PWCS test, so employers planning a January 2027 round should check eligibility on the IRAS pages before they settle the quantum. The NWC text describes the co-funding as support for resident lower-wage workers, so do not assume it extends to foreign workers’ increases.
What should HR do before 1 December 2026?
Work through the following steps before the pay cycle that includes 1 December 2026.
- List every employee earning up to S$2,800 gross a month, separating residents from foreign workers and PWM-covered roles.
- Classify the business under the four categories, using documented indicators such as revenue growth, order book, productivity and profitability.
- Compute the dollar and percentage increase for each wage level and compare it with the S$200 PWCS average-increase condition from 2027.
- Check each PWM-covered role against its mandatory wage floor, whatever the category.
- Budget for the 0.5 percentage point increase in employer CPF for workers above 55 to 65 from 1 January 2027, as the NWC lets employers consider it when sizing increases. See our note on CPF rates from 2027.
- Share business performance and wage information with the union where one exists, and keep a written record of the classification.
- Review the Flexible Wage System: the NWC calls on employers to adopt both the Annual and Monthly Variable Components.
Frequently asked questions
Are the NWC guidelines compulsory?
No. They are tripartite recommendations that the Government has accepted. Mandatory wage floors come from the Progressive Wage Model and related rules, which apply regardless of the guideline.
What is the lower-wage worker threshold for 2026/2027?
The lower-wage guidelines apply to employees earning a gross monthly wage up to S$2,800, which corresponds approximately to the 20th percentile wage of full-time employed residents in 2025 (per the NWC, as at 19 October 2026).
What if my business is struggling?
Employers who have not done well but are profitable should provide the lower end of 6.0% to 8.0% or at least S$120. Those who are unprofitable should provide at least S$120, and review wages if prospects improve.
Do the guidelines cover bonuses?
The lower-wage figures are built-in increases to gross monthly wage. The NWC separately encourages variable payments such as bonuses and one-off payments from employers who have done well.
Does the guideline cover part-time staff?
The percentage range applies to part-time lower-wage workers, but the minimum dollar amount does not.
Need help structuring pay for foreign hires or checking work pass quota and salary rules? Contact Little Big Employment Agency for pass, PR and citizenship applications. Email [email protected] or call, SMS or WhatsApp +65 8501 7133.
Last reviewed: 26 October 2026. The Editorial Team, Little Big Employment Agency.
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