Wage Guidelines for 2023/2024. Mandatory Wage Requirements from July 1, 2024
The National Wages Council (NWC) has issued the wage guidelines for the year 2023/2024, including mandatory wage requirements for Administrators and Drivers starting from July 1, 2024.
In addition to this, we cover important highlights from the Ministry of Manpower’s Labor Market Advance release for the third quarter of 2023. We also discuss workplace strategies for dealing with grief and touch upon a case where an HR manager received a jail sentence for attempting to deceive the Inland Revenue Authority of Singapore (IRAS) by submitting false claims.
aaa
Wage Guidelines for 2023/2024 by National Wages Council
NTUC is urging employers to adopt the National Wages Council’s (NWC) recommendations for fair, inclusive, and sustainable wage growth.
The NWC, amid a weaker economic outlook, has proposed implementing the Flexible Wage System (FWS) to promote fair and sustainable wage increases, especially for lower-wage workers, alongside workforce transformation and addressing cost-of-living pressures.
These recommendations were outlined in the NWC’s annual wage guidelines for December 2023 to November 2024, which were accepted by the government. Despite an economic slowdown, the labor market expanded in Q3 2023, but there were also increases in retrenchments and unemployment. The Trade and Industry Ministry predicts modest economic growth for 2023 and beyond.
Recommendation 1: Fair and sustainable salaries for all workers to power productivity.
- Flexible Wage System to adjust salaries based on business situations.
- When times are good, increase salaries and offer bonuses.
- When there is uncertainty, moderate increments but give bonuses.
- When times are bad, lower increments and transform, but consider bonuses if things improve.
Recommendation 2: One-off payment for all workers to manage rising costs, with higher amounts for lower to middle-income workers.
Recommendation 3: Increase salaries for workers earning Up to S$2,500 to ensure growth over time.
- When times are good, increase salaries to the higher range of 5.5% – 7.5% or $85 to $105.
- When there is uncertainty, use the lower to middle range of $85 to $105.
- Higher increases for workers who earn less.
Mandatory Wage Requirements
Mandatory Wage Requirements under Occupational Progressive Wages’ (OPW) for Administrators and Drivers from 1 July 2024 to 30 June 2026.
Source: https://www.ntuc.org.sg/uportal/news/National-Wages-Council-releases-wage-guidelines-for-2023-2024/ (ntuc.org.sg)
aaa
Key Highlights of Advance Labour Market Report 3Q 2023
Employment Growth
In the third quarter of 2023, total employment saw its eighth consecutive quarterly growth, adding 24,000 jobs, which was on par with the previous quarter (2Q 2023). The increase in employment was driven by both residents and non-residents.
Resident employment saw growth in sectors characterized by higher-paying jobs, such as Financial Services and Professional Services, in addition to the Health & Social Services sector. On the other hand, non-resident employment increased in sectors like Construction, Retail Trade, Food & Beverage Services, and Administrative & Support Services, where resident employees typically held temporary positions.
Unemployment Rates
Unemployment rates have been largely stable and remained low in September 2023 (overall: 2.0%, resident: 2.8%, and citizen: 3.0%), despite the slight rise in July. However, the Ministry of Manpower (MOM) cautioned that unemployment has been on a slow uptrend and may continue to rise further.
Retrenchment
There was an increase in retrenchments, rising from 3,200 in the second quarter to 4,100. The primary contributor to this increase was the Wholesale Trade sector, which was impacted by a challenging global economic environment. In the remaining sectors, the number of retrenchments either remained steady or decreased.
The primary reason for retrenchments during this quarter continued to be business reorganization or restructuring.
Outlook
Business expectations worsened in September 2023. The proportion of firms which indicated an intention to hire in the next three months fell from 58.2% to 42.8%, lower than in June 2020 during the pandemic. Similarly, the proportion of firms with an intention to raise wages dropped as well, from 28.0% to 18.0%
Finalized labor data with more details will be out in mid-December, so stay tuned!
Source: Labour Market Advance Release Third Quarter 2023 (mom.gov.sg)
az
Why Addressing Grief in the Workplace Matters?
Grief is a crucial issue in the workplace that often goes unnoticed. Psychologist Dr. Mekel Harris and Grief Educator Janet Gwilliam-Wright share their personal experiences and offer a three-pronged solution to this challenge.
Connection
Employees appreciate when their grief is acknowledged and inquired about. It fosters a deep connection among colleagues and management, boosting workplace satisfaction.
Community
Creating opportunities for employees to gather and support each other is vital. It helps combat isolation and disconnection that grieving employees may feel upon returning to work.
Culture
Establishing a grief-informed workplace culture is essential for long-term success. It includes improved bereavement leaves and reintegration strategies, ensuring psychological safety for grieving employees.
Addressing grief concerns not only empowers HR leaders and managers but also creates a safe space for employees to share their experiences. Let’s promote a workplace that values connection, community, and culture, benefiting everyone involved.
Source: Grief: What Human Resources needs to pay attention to (hrmasia.com)
j
HR Manager Jailed for trying to cheat IRAS with false documents on non-existent workers for Jobs Support Scheme payouts.
Wong, a HR manager, has been sentenced to four months in jail for attempting to deceive the Inland Revenue Authority of Singapore (IRAS) by submitting false claims under the Jobs Support Scheme (JSS).
Wong was employed at a debt collection company, and fraudulently claimed JSS payouts by making CPF contributions for two employees in prison and seven non-existent workers. Despite knowing that the imprisoned individuals weren’t employed, Wong attempted to deceive IRAS into believing otherwise.
Although her actions didn’t result in financial loss, she received the jail term to protect public funds and maintain good governance. The court emphasized the severity of attempting to defraud a public institution. Wong could have faced up to 10 years in jail and fines for each charge.
Source: Jail for HR manager who tried to cheat Iras with false documents on non-existent workers for Jobs Support Scheme payouts – (todayonline.com)
aaa
Disclaimer: Please use the information provided in this newsletter at your own discretion and risk. We are not responsible for any losses incurred by users in relation to the information provided in this newsletter and we seek your understanding.
