Removing AWS

Dear HR Community

We are exploring doing away with the Annual Wage Supplement (AWS) - the 13th-month payment - since it is not compulsory and we are not unionised. We want to give higher increments to our staff instead.

Since AWS is mentioned in the employment contract we have been giving it annually even though it is based on the discretion of the management. Now there is an expectation from staff that AWS is included every year.

So my questions are:

Is your organisation still giving the AWS?
If no, what process did you implement to remove AWS from the compensation package of your employees? e.g. new contract etc

Please indicate your views using the form below.

Thank you in advance for your advice and comments.

Gladys

Is your organisation still giving the AWS?

Yes: 57.14%

No: 30.95%

Sometimes: 2.38%

Never: 9.52%

Comments:

Include the AWS amount in the monthly basic salary for existing employees. - Min

We split the variable bonus every 6th month. - Tracy

You may consider making an official announcement about the changes of replacing AWS with high increment with more details and gathering feedback from employees. most important is the buy-in, how the message and new implementation make employees feel beneficial to them. - Yang

Since day 1, we do not have AWS. - Jolene

We informed all employees this was a company decision and explained AWS was not mandatory and it was not actually a form of bonus. We integrated AWS into their monthly salary. This increased their base salary and it was better than increments. - Jaslyn

Companies give AWS depending on revenue. Therefore, they do not indicate in employment contracts. If your company wishes to discontinue AWS but give higher increments to staff instead, you may need to revise the contract and get everybody to sign. - Nicole

It was never included in employment contracts from the start. - Alvin

Built it into monthly salary. - Julie

Our HQ is in the US and they don't practice AWS. So our Singapore employment contracts do not mention AWS. - Jennifer

We changed AWS into a quarterly bonus instead. - Jass

State clearly the situation, e.g. we're incorporating AWS into your monthly salaries, and provide the calculation for their reference. Help them to understand it is not a removal of a benefit, but incorporating it into their month-to-month salary. The upside for them is more money in their pockets every month instead of waiting until year-end for extra cash. - Annie

With effect from 2022, we have completely removed the terminology of the 13th month / AWS. We pay only Bonus now which includes everything. Although as a precedent we have been paying staff AWS since decades ago, Management decided to remove it to give greater flexibility in managing payouts. We are able to do so as payment of the 13th month/AWS was never part of our employment contract. We communicated the removal by a memo from Management. If it is contractual, then it is difficult to remove it. You can include it in your new employment contracts. - Lucy

We are an Australian company, and it's not a practice to pay out AWS. - Linda

It is not stated in our contracts. - Jessica

New contract, new terms. - Aida

Instead of AWS, we give our employees a variable bonus that is based on the company's performance. - Kris

We build into the staff's basic salary and communicate the benefits and the change moving forward without AWS. - Jess