Singapore companies urged to provide sustainable wage increments

Singapore companies have been urged to give their employees sustainable wage increments.

Following the release of the wage guidelines for the fiscal year starting in July 2010 to June 2011, Singapore’s National Wages Council is aware that some companies have withdrawn their wage restraint measures, Channel NewsAsia reported.

However the council still urges the rest of the companies which have not done so to adjust their wage increments accordingly.

However, the council still recommends companies to maintain flexibility in wage structures, and that employees can be rewarded through variable payments according to their performance and level of productivity. For the companies which are still facing financial difficulties from the recession, they should grant their employees variable payments.

The council also suggests companies to share the productivity gains with employees in forms of bonuses or incentives to entice employees to raise productivity. Appropriate Key Performance Indicators should be in place to measure employees’ contributions so that they can be rewarded accordingly.

Companies are also urged to pay more attention to employees who receive lower wages, including contractual and casual workers, as they have been badly impacted by the high inflation in 2008 and recession in 2009.

However, employers can take the recent 1% increase in employers’ CPF contribution into consideration as it is also part of employees’ compensation packages.

Sources and references: HRO

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