Reducing Salary

Reducing Salary

How does HR go about reducing the salary of an employee in an organisation in Singapore?

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Untitled Design (21)

Salary Adjustment at Age of 60

QUESTION Dear All, My company currently review about this possibility to cut cost; however, could not really get a clear guidelines from MOM/Tripartite. Is employer allow to do so? Thanks. SK     REPLIES & COMMENTS REPLY 1 With regards to salary adjustments at age 60, deductions can only be made on reasonable grounds as with any other age – e.g. 1.) that the company is going through restructuring due to poor economy/performance, 2.) they has consulted with MOM and/or unions, 3.) they have made significant job role/scope reductions or new work arrangements (conversion from full-time to part-time), AND 4.) if the employee agrees with such arrangements on a new employment agreement. Otherwise, any salary adjustments made at this point on the basis of age is not deemed valid. Under the Retirement & Re-employment Act, an employer has to offer re-employment for an employee who turn 62, and they are to engage the employee with discussions for the re-employment arrangements not less than 6 months prior to this. At this point, the company can opt to redesign the employee’s job scope to accommodate for salary adjustments (e.g. reduction in overall responsibilities and fixed salary), although these readjustments have to be seen […]

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Salary

Salary reduction

Due to the current recession, we have decided to implement a salary reduction exercise and how to carry this out.

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