NWC unveils wage cut guidelines to sustain businesses, jobs amid Covid-19 outbreak

Singapore

IF WAGES have to be cut at all because company bottom lines have been hit by the virus outbreak, the National Wages Council (NWC) recommends that the cut be made in the Monthly Variable Component (MVC).

The MVC, which is part of workers' basic monthly wage, should only be that emergency lever employers use to lower their wage bill in sudden business downturns, in order to survive and to save jobs.

The size of the cut hinges on the company's situation and key performance indicators, or on guidelines agreed with the union or workers.

The nearly 90 per cent of firms with no MVC - mostly the small and medium-sized …

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