URL:http://www.mom.gov.sg/FAQs/LabourRelations/EmploymentAct/PaymentofAnnualWageSupplementandOtherVariablePayment.htm


What is "Annual Wage Supplement" (AWS)?
"Annual Wage Supplement", commonly known as the 13th month payment represents a single annual payment to employees that is supplementary to the total amount of annual wage earned by them.

	Is there any maximum amount of AWS that an employer can give to his employee?
Yes, the maximum amount is 3 months' salary in the case of an employer who has agreed either by way of an employment contract or collective agreement to pay an AWS of up to 3 months' wages before the commencement of the Employment (Amendment) Act 1988 on 16 Aug 88. The employer can however, negotiate with his employees or trade union representing his employees to vary the quantum.

An employer who has not paid any AWS prior to 16 Aug 88 is not allowed to pay an AWS of more than 1 month's wages.

	Is Annual Wage supplement a statutory entitlement?
No, it is a contractual obligation of the employer to pay AWS if this is provided for in the employment contract or collective agreement. Otherwise AWS payment is subject to negotiation and mutual agreement between the employer and the employees or their trade unions.

	If an employee has served an employer for less than 12 continuous months, is he entitled to pro-rated AWS?
No, unless this is provided for in the employment contract. or collective agreement.

	Can the AWS be adjusted downwards?
An employer may in the event of exceptionally poor business results for any year negotiate with his employees or the trade union representing his employees to adjust the AWS downwards.

	What is Bonus?
Bonus is a one time payment which is usually paid to employees at the end of the year to reward them for their contributions to the company.

	Is Bonus a statutory entitlement?
No. However, it is a contractual obligation for the employer to pay bonus if this is provided for in the employment contract or collective agreement.

	What is "Variable Payment"?
"Variable Payment" is an incentive payment to all employees to increase their productivity or as a reward for their contribution. The amount of variable payment can be based on trading results or productivity or any criteria agreed upon by the employers or employees or unions.

	Is variable payment a statutory or compulsory payment?
No, unless such payment is provided for in the employment contract or collective agreement.