The Annual Wage Supplement (AWS), also known as the 13th-month bonus, is a customary year-end payment in Singapore given to employees on top of their 12 months of regular salary. The AWS is typically equivalent to one month’s salary and is intended to reward employees for their yearly contributions.

Here are some key points about AWS:

  1. Customary Practice: While not legally mandated, the AWS is a common practice in many companies in Singapore. It is often included as part of the employment contract.
  2. Timing: The AWS is usually paid at the end of the calendar year, often in December, just before the holiday season.
  3. Pro-Ration: If an employee has not worked a full year, the AWS might be pro-rated based on the number of months the employee has worked within the year.
  4. Collective Agreements: In companies with union agreements, the payment of the AWS may be stipulated as part of these agreements.
  5. Economic Conditions: During economic downturns, some companies may negotiate with their employees to reduce or defer the AWS to preserve jobs and manage costs.

The AWS is an important aspect of employee compensation in Singapore, reflecting the country’s unique employment practices and cultural context.


Yours sincerely,

The editorial team at Raffles Corporate Services