Singapore Tripartism Forum

Ministry of ManpowerNational Trades Union CongressSingapore National Employers Federation
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Home > Tripartite Initiatives > Wage Restructuring

Wage Restructuring

The Tripartite Taskforce on Wage Restructuring was formed in July 2003 to drive the implementation of wage restructuring. The two key objectives the Taskforce wanted to achieve were

  1. to increase wage flexibility and
  2. to enhance wage competitiveness in Singapore.

The Tripartite Committee on the Employability of Older Workers pointed out in its final report that while we need to expand employment opportunities for older workers, we also need to ensure that the cost of employing and retaining older workers does not affect the business competitiveness of employers, which would ultimately undermine the employability and job security of the older workers.

Since 1998, much effort has been undertaken to increase the cost competitiveness of older workers. This has been done through efforts to drive wage restructuring at the company level towards a flexible and performance-based wage system, introduction of CPF cuts and wage reductions of up to 10% after the age of 60 years, as well as implementation of the Portable Medical Benefits Scheme and the Transferable Medical Insurance Scheme.