The Singaporean government has given its support to awarding proportionally higher pay rises in the next year to low-wage workers, having approved guidelines from the National Wages Council (NWC).

The NWC recommended that companies across the economy should award built-in wage increases to all workers, but in particular said that low-wage workers should be given a “proportionately higher built-in wage increase”.

This could comprise a “dollar quantum” or set amount on top of a percentage wage increase, and recommends a net 5% increase for workers earning a monthly salary of up to SG$1,000 (£500), giving them an extra $50 a month.

The NWC also called for measures to enhance employability and employment levels among older workers.

The government’s response to the NWC notes: “We urge companies to pay special attention to the low-wage segment of the workforce.”

The council is a tripartite body comprising unions, employers and the government, and was formed in 1972 in a time of increasing industrialisation in the city-state.