Shaping Singapore’s Workforce: Wages, Fairness, and Young Talent
In this month’s newsletter, we bring you the latest updates on Singapore’s labour market and key HR developments.
We begin with insights from a recent Singapore University of Social Sciences (SUSS) study on employment trends and motivations among younger workers.
Additionally, the National Wages Council (NWC) has proposed a 5.5% to 7.5% wage increase for lower-wage workers in its latest guidelines.
Lastly, Parliament has passed the second Workplace Fairness Bill, paving the way for its rollout by end-2027.
Young Workers’ Willingness to Change Jobs
According to the research, 68% of local young workers indicated that they are either actively seeking a new job or open to changing jobs for a better opportunity.
By age group, those aged 18–25 showed the highest rate of actively searching for new jobs, while those aged 26–30 were more likely to say they would consider a move if a good opportunity arose.
Meanwhile, workers aged 31–35 had the highest proportion of respondents who said they were not considering a job change.
※Click on the chart to view it in larger size.
Areas of Lowest Job Satisfaction
Across all younger age groups, the three most frequently cited sources of dissatisfaction at work were:
- Team culture and human relationships
- Career advancement opportunities
- Salary and benefits
These findings suggest that interpersonal relationships and career growth opportunities play key roles in shaping overall job satisfaction, which in turn affects employee retention.
However, the trends are varied by education level:
- Among degree or professional qualification holders (aged 26–35), work-life balance was cited as a greater source of dissatisfaction than career advancement.
- Among postgraduate holders (aged 18–30), dissatisfaction stemmed mainly from a lack of learning and development opportunities.
- Postgraduates aged 31–35, on the other hand, expressed concern about the meaning and impact of their work.
※Click on the chart to view it in larger size.
Employment Priorities
Across all age groups, financial compensation and job stability ranked as top priorities for younger workers.
Flexible work arrangements were also highlighted as an important factor, especially among the 18–25 and 31–35 age groups.
In contrast, those aged 26–30 placed the greatest emphasis on work-life balance.
Differences were also observed based on education level:
- Among secondary school graduates, flexible work arrangements emerged as the highest priority across all age groups.
- Among postgraduate holders (aged 26–35), financial rewards, job stability, and career advancement ranked the highest.
- Younger postgraduates (aged 18–25) placed greater importance on meaningful work and passion for their field.
※Click on the chart to view it in larger size.
Motivations for High Performance
Across all age groups, flexible work arrangements and financial incentives were identified as the main motivators for higher performance among younger workers.
However, additional motivators differed by age group:
- Autonomy was a key motivator for those aged 18–25.
- Career advancement opportunities were more valued among those aged 26–35.
Educational background also played a role:
Young workers with a secondary education placed greater emphasis on recognition from supervisors and supportive colleagues.
These findings indicate that even within the “young worker” group, motivations and career expectations vary significantly depending on age and education level.
As companies plan for long-term sustainability, younger employees will play an increasingly important role in shaping the organization’s future.
We hope these findings will serve as a useful reference for your hiring and employee engagement strategies.
You may access the full report here:
Workplace Success and Soft Skills: Bridging the Gap Between Youths’ Perceptions and Employers’ Expectations
The National Wages Council (NWC) has proposed that lower-wage workers earning up to S$2,700 per month receive a pay increase of 5.5% to 7.5% under its new annual guidelines.
For eligible employees in companies that have performed well, the Council recommends a minimum rise of S$105 to S$125, even if this pushes the percentage above the guideline range.
The recommendations factor in the recent economic environment and the median income growth of 4.2% per annum between 2016-2024.
Employers are advised to adopt or continue using a flexible-wage system (including monthly and annual variable components) to maintain wage flexibility during downturns and support retention.
The guidelines apply for the period 1 Dec 2025 to 30 Nov 2026, cover both unionised and non-unionised firms across public and private sectors, and while not mandatory, carry strong influence in labour-management discussions.
What this means for your company:
- Reviewing the wages of staff earning up to S$2,700 may be timely in light of these recommendations.
- Consider whether your business performance allows for the higher side of the increase or at least the lower bound.
- The move reinforces the importance of variable wages, performance management and workforce transformation efforts.
- While not legally mandated, aligning with the guidelines can help strengthen employee morale, retention and employer branding.
Click here for the full article
On 4 November 2025, Parliament passed the second of two bills underpinning the Workplace Fairness Act, introducing a structured framework for discrimination claims at work.
The law is now slated to take effect by the end of 2027, giving employers and employees lead-time to prepare.
Key features include:
- Protections against adverse employment decisions based on age, nationality, sex, marital/pregnancy status, caregiving responsibilities, race, religion, language, disability and mental health conditions.
- A dispute-resolution process that emphasises internal company grievance handling and mediation before formal adjudication.
- Expansion of the Employment Claims Tribunals (ECT) jurisdiction to handle discrimination claims up to S$250,000, and a mechanism for striking out frivolous or unmeritorious claims.
- Small companies (with fewer than 25 employees) are exempt initially, reflecting the differential capacity of businesses to comply.
What this means for your company:
- Organisations have until end-2027 to gradually review HR and grievance-handling processes.
- It may be helpful to ensure internal grievance procedures and manager/HR training are ready ahead of implementation.
- Consider updating policies to reflect newly protected characteristics such as age, language, mental health, and caregiving duties.
- With expanded tribunal access (including PMEs), strengthening documentation and risk management can be beneficial.
- Preparing early supports smoother compliance and helps build a more inclusive workplace culture.
Click here for the full article
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