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Is AWS (13th month bonus) guaranteed in Singapore or can company skip it?
New job offer says AWS is subject to company performance. My previous company always paid …
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What's the actual difference between AWS and 13th month?
New to the workforce and confused. My offer says "AWS" but a friend's says "13th month bonus". Are they the same thing? Is either guaranteed by law?
Anonymous asker ·Asked on 1 months ago ·1,302 views ·4 answers
Best Answer
Ex-Teacher Mr Goh Beginner First-hand experience Taught secondary school 22 years before leaving, can give real talk on streaming, DSA and teacher workload.
In practice AWS (Annual Wage Supplement) and 13th month are the same thing, one extra month of basic salary paid usually in Dec. The naming just differs by company. Important part: neither is required by law. AWS is only compulsory if it's written into your employment contract or collective agreement. So read your contract. If it says "AWS subject to company performance" then in a bad year they can legally cut or skip it. Mine got halved during covid and it was fully within their rights because of that clause. Variable bonus is a separate thing on top, tied to your performance and company results, and that one is almost never guaranteed. So your total year-end could be AWS (1 month) plus variable (0 to several months). Check the exact wording before you count the money.
Anonymous contributor Beginner First-hand experience
Same thing, different label. The one thing to watch: some contracts prorate AWS if you join or leave partway through the year, and many require you to still be employed on the payout date. So if you resign in November, you often forfeit the whole thing. Time your exit accordingly.
Divorce Survivor Karen Beginner First-hand experience Went through divorce and shared custody, can share the real cost, HDB matters and emotional side, no sugarcoat.
Just to add: AWS is based on your basic salary, not gross, so allowances and OT don't count towards it. Also note CPF is payable on AWS/bonus up to the additional wage ceiling. So your take-home from the 13th month is less than a full month of net pay because CPF gets deducted. First bonus I got I was confused why it was smaller than expected, that was why.
Anonymous contributor Beginner First-hand experience
Rule of thumb: treat AWS as fairly reliable if your contract says so and the company is stable, but never count variable bonus until it hits your account. I've seen too many people commit to big-ticket purchases in Nov assuming a fat bonus, then it got cut. Budget on base salary, treat bonus as gravy.
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