This marks the highest rate of wage adjustments for low-income workers since 2015. The average salary increase for this group stood at 8.4%, surpassing the 5.4% increase received by other employees.
Despite these improvements, fewer companies followed the wage adjustment guidelines issued by the National Wage Council . The report revealed that although 60% of businesses were aware of the council’s recommendations, only 27.6% implemented them—a slight decline from 30.1% in 2022. The NWC guidelines advocate for substantial wage increments for low-income workers, but many employers are hesitant due to the financial burden of higher increases.
The report suggests that the relatively low adherence rate to NWC guidelines reflects the expanded scope of low-wage employees covered by the council’s recommendations. This broader inclusion, coupled with higher suggested wage increases, poses a greater cost challenge for businesses. While the rise in wages represents progress for low-wage employees, the findings point to a need for greater alignment between businesses and national wage policies to ensure sustainable income growth for the most vulnerable workers in the labor force.
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