Fair pay has become an increasingly important issue in Singapore’s evolving workplace landscape. While Singapore does not adopt a universal minimum wage, it has developed a structured and multi-layered system to ensure that wages remain fair, progressive, and non-discriminatory.
This article explains how fair pay is defined in Singapore, the frameworks that support it, and what both employees and employers should understand about their rights and responsibilities.
In Singapore, fair pay refers to remuneration that is equitable, transparent, and based on merit, rather than personal characteristics unrelated to job performance.
At its core, fair pay means that employees should be compensated fairly regardless of race, religion, gender, or nationality, and that wages should reflect factors such as skills, experience, job scope, and productivity. This principle underpins Singapore’s broader approach to employment practices and workplace fairness.
Oversight and enforcement of these principles fall under the purview of the Ministry of Manpower and other Tripartite partners, working closely with employers, unions, and industry stakeholders.
Unlike many countries, Singapore does not impose a universal minimum wage across all sectors. Instead, it relies on targeted wage frameworks and national guidelines to protect workers while maintaining economic competitiveness.
This approach allows wage policies to remain responsive to:
Rather than a single wage floor, Singapore adopts a calibrated system designed to uplift lower-wage workers without unintended consequences such as job losses or reduced hiring.
One of the key pillars of fair pay in Singapore is the Progressive Wage Model (PWM).
The PWM applies mainly to sectors such as cleaning, security, landscaping, retail, and food services. Under this model:
The PWM ensures that wages do not stagnate over time and that workers have clear pathways for income progression, while encouraging businesses to invest in skills development rather than relying on low-cost labour.
Another cornerstone of Singapore’s fair pay framework is the annual wage guidance issued by the National Wages Council.
The NWC comprises representatives from the government, employers, and unions, and its recommendations reflect prevailing economic conditions.
Under the most recent guidelines:
These recommendations are not legally binding, but they serve as an important benchmark. Many employers adopt them as part of responsible wage practices, and they are widely viewed as reflecting fair and sustainable wage growth.
The Local Qualifying Salary (LQS) is another mechanism that supports fair pay for local workers.
The LQS sets a salary quota for local employees, currently at $1,600, which has to be met for the company to gain access to hire foreign workers. Some key functions/ purposes:
By tying access to foreign manpower to local wage standards, the LQS incentivises genuine hiring of locals and prevents overreliance on the foreign talent.
Fair pay in Singapore is closely linked to the principle of non-discrimination in employment.
Employees should not be paid less due to:
Pay differences must be justifiable based on legitimate factors such as job scope, seniority, qualifications, and performance. This principle aligns with Singapore’s broader workplace fairness framework aimed at strengthening protections against discriminatory practices.
Fair pay:
Adopting fair pay practices:
Fair pay is not just a compliance issue, it is a strategic consideration that affects organisational culture and sustainability.
Although Singapore does not impose a universal minimum wage, its approach to fair pay is far from unregulated. Through structured frameworks such as the Progressive Wage Model, National Wages Council guidelines, and the Local Qualifying Salary, Singapore seeks to balance economic growth with worker protection.
For both employees and employers, understanding these mechanisms is essential. Fair pay is ultimately about equity, dignity, and shared responsibility, ensuring that wage growth remains progressive, inclusive, and sustainable in a changing economy.