Is it only here, or the Commonwealth countries, or every part of the world, that practices the thirteenth-month pay, which companies call a bonus? The companies here differ in the bonus practice. But the thirteenth month pay is still compulsory.
Some companies will pay a huge bonus, like six months, which comprises of the thirteenth month salary, plus five months extra. Very fat pay cheque indeed! Some companies will give a performance or increment bonus on top of the annual bonus.
Come to think of it, should the annual bonus all be given out in December? Afterall, it is called the "Christmas Bonus", is it not? Most companies I know give out in December, just before Christmas. Some companies give in November, some in January, some in June, some in September even. Is there a fixed month where the bonus will be given out?
For civil servants, the annual bonus is given out every mid-December. Performance bonus will be in March, annual increments in whatever month the employee started work. For instance, when I joined the civil service all those years ago, it was in July, so I got my incremental bonus every July.
The annual bonus is not fixed as well, which is why it is called the "Annual Variable Bonus". The amount depends on the economy and market. If the economy was booming for the year, the bonus will be more. If not, then less. For most companies, the average bonus is thirteenth month plus an extra month. Some small companies give only the thirteenth month and nothing else.
From what I know, certain companies will dock the employees' pay if the industry or company is not doing well. Employees would rather take a pay cut than be retrenched altogether. But when the company is picking up, it will pay back the employees, in the form of big bonuses. So in a way, having lots of bonus can be a way of the employer recognising the employees' efforts and work.
Come to think of it, what exactly goes into one's remuneration package? Is it just the monthly salary with all the bonus, or is it the salary, bonus, allowance and CPF? But if the bonus fluctuates, then will our annual pay package not fluctuate too?
Some companies will pay a huge bonus, like six months, which comprises of the thirteenth month salary, plus five months extra. Very fat pay cheque indeed! Some companies will give a performance or increment bonus on top of the annual bonus.
Come to think of it, should the annual bonus all be given out in December? Afterall, it is called the "Christmas Bonus", is it not? Most companies I know give out in December, just before Christmas. Some companies give in November, some in January, some in June, some in September even. Is there a fixed month where the bonus will be given out?
For civil servants, the annual bonus is given out every mid-December. Performance bonus will be in March, annual increments in whatever month the employee started work. For instance, when I joined the civil service all those years ago, it was in July, so I got my incremental bonus every July.
The annual bonus is not fixed as well, which is why it is called the "Annual Variable Bonus". The amount depends on the economy and market. If the economy was booming for the year, the bonus will be more. If not, then less. For most companies, the average bonus is thirteenth month plus an extra month. Some small companies give only the thirteenth month and nothing else.
From what I know, certain companies will dock the employees' pay if the industry or company is not doing well. Employees would rather take a pay cut than be retrenched altogether. But when the company is picking up, it will pay back the employees, in the form of big bonuses. So in a way, having lots of bonus can be a way of the employer recognising the employees' efforts and work.
Come to think of it, what exactly goes into one's remuneration package? Is it just the monthly salary with all the bonus, or is it the salary, bonus, allowance and CPF? But if the bonus fluctuates, then will our annual pay package not fluctuate too?
3 comments:
There is no practice of 13th month bonuses here.
In the early days of being married, Sofia was surprised that I did not recieve a July-August and Christmas bonus (as in common in Peru) - each bonus being equivalent to 1 months salary.
I explained that there is not such thing as a fre lunch (bonus), if it is customary to give you 2 bonuses per year, then that is factored into your pay and you are correspondingly paid less each pay period (they just save up the money and pay it out to you as a "bonus").
The last time I receieved a bonus was 9-10 years ago when the company I worked for was bought out and everyone got a nice bonus for all the hard work they put in to make it successful.
actually, the 13th month supplement or Annual Wage Supplement (AWS) is not compulsory in Sgp. It is a variable and it is an entitlement, not part of the salary per se.
Richard : So I presume your monthly pay will be more in comparison?
Imp : Is it? I heard it from a HR person that companies will give 13th month bonus. It is only the other bonuses that is at the discretion of the company. Thanks for clearing this up.
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