Learn about the 13th month salary in Singapore thanks to Horizons’ up-to-date guide.
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Yes, known as the Annual Wage Supplement (AWS), this is a single annual payment commonly made to employees on top of their total annual wage.
The 13th-month pay is calculated by dividing an employee’s total basic salary for the year by 12.
The 13th-month pay is paid out at the end of the year in Singapore, in time for the Chinese New Year.
Normally when an employer makes an offer, they will divide their budget by 13 (12 calendar months, + the 13th month salary).
Yes, considered a type of bonus by the IRAS, the 13th month pay is taxable in Singapore.
Although it is not mandatory, the 13th month pay, also known as the Annual Wage Supplement (AWS) is a common business practice used by companies in Singapore.
There are not more than 13 months of pay in Singapore, although employers may reward employees with bonuses and variable payments.
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