In today’s economy, understanding your salary and benefits is crucial. One term you may have come across is the Annual Wage Supplement (AWS), also known as the 13th-month bonus. But what exactly is AWS, and how does it affect you? In this guide, we’ll delve into the details of AWS, its significance, and how it can impact your finances.
Understanding Annual Wage Supplement
The Annual Wage Supplement (AWS) is an additional payment made by employers to their employees, typically paid once a year. It is also commonly known as the 13th-month bonus, as it amounts to an additional month’s salary.
AWS: A Brief History
The concept of the Annual Wage Supplement originated in Singapore in 1965. It was introduced as a way to help employees cope with the rising cost of living and to reward them for their hard work and dedication.
Who is Eligible for AWS?
Most employees in Singapore are eligible for AWS, but the exact eligibility criteria may vary depending on the company and the employment contract. Generally, full-time employees who have worked for the company for at least one year are eligible.
How is AWS Calculated?
The calculation of AWS is typically based on the employee’s monthly salary. Employers may choose to pay a fixed amount or a percentage of the employee’s monthly salary as AWS.