In Singapore, Annual Wage Supplement (AWS) a.k.a. 13th month bonus/salary is offered by most of the employers. However, there are still some SMEs which do not do so. It then led to a big question of whether the AWS is compulsory under the Employment Act or not.
Well, as far as what is described in the Employment Act, AWS depends on the employment contract. If it is not stated obviously in the contract, AWS is actually subject to negotiation and mutual agreement between the employer and employees or the trade union representing them.
On the other hand, bonus and variable payment are also the same, not compulsory but is encouraged by the MOM. Depends on the contractual agreement, many companies pay bonus according to the individual performance, while consider the variable payment by referring to their corporate performance.
http://www.mom.gov.sg/publish/momportal/en/communities/workplace_standards/employment_standards/the_employment_act/Annual_Wage_Supplement_and_Other_Variable_Payments.html |
