January 26, 2011

2011 - Annual Wage Supplement (AWS) or The 13th Month Pay

Annual Wage Supplement (AWS) or The 13th Month Pay in the Singapore



Annual Wage Component
The Annual Wage Component is made up of the Annual Wage Supplement (AWS) and any other annual bonuses.


AWS is also known as 13th month payment. It is a one-off payment that is supplementary to the total amount of annual wages earned.

An annual bonus is an optional, one-time payment given at the end of the year. It is usually paid to motivate employees who have performed well.

The Government recommends that the Annual Variable Component be 20% of annual wages or 1-3 month's salary.

The Annual Wage Component is not compulsory. You may choose to include AWS and other bonuses in employment contracts negotiated with your employees.





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