MOM Salary Calculation: Beating a dead horse?

[zzm9980]

Hi,

Sorry if I'm beating a dead horse, and maybe I should know better, but I'll ask anyway.

I receive a fairly nice 'Transportation' allowance. Without it, my base salary is just short of new PEP requirements. With it, I'm well over. My HR now is saying that MOM *will* count my allowance towards the new PEP requirement. (They agree my bonuses and stock will not count). This seems to go against the impression I was under from everything on this board. Digging on MOM's site, I find this:

http://www.mom.gov.sg/employment-practi ... alary.aspx

The Gross rate of pay should include allowances that an employee is entitled to under his/her contract of service, but it excludes the following:

Additional payments by way of:
overtime payments;
bonus payments; or
annual Wage Supplements;
Any sum paid to the employee for reimbursement of special expenses incurred by him/her in the course of employment;
Productivity incentive payments; and
Travelling, food or housing allowances.

Now, my allowance is labelled transportation, not travelling. Semantics, or not? Mine is intended for getting to/from work inside of Singapore. I interpret 'Travelling' to mean the reimbursements my company gives me for all of my overseas travel. Per-diems, expense claims, etc.

Anyone know? SMScough?

[Strong Eagle]

It seems that "transportation" is not "traveling" expense.

I believe the differentiator is as follows: If you are receiving a an allowance that is continuous and does not vary from month to month, then it will count towards your base salary. Example: Monthly housing allowance, monthly tuition allowance for kids, monthly transportation allowance.

If however, you receive monies that are variable each month, or are not paid each and every month, then they cannot be counted as base pay simply because they are variable and subject to change.

That's how I've seen it work.

[zzm9980]

I believe the differentiator is as follows: If you are receiving a an allowance that is continuous and does not vary from month to month, then it will count towards your base salary. Example: Monthly housing allowance, monthly tuition allowance for kids, monthly transportation allowance.

Their page specifically excludes food and housing though. It does make the most sense though the way you say it. Anyone else want to Chime in? coughSMScough

[Wd40]

I think you are looking at the wrong definition of salary.

Basically you need to look at these 3 terms:
Basic Monthly Salary:
Fixed Monthly Salary:
Gross Annual Salary:

http://www.mom.gov.sg/Documents/service ... cation.pdf

Considering that the PEP requirement pertains to the Fixed Monthly salary and not the Basic Monthly salary, I would imagine Strong Eagle is right.

How long have you been a PEP holder? If you were on it at the end of last year, what did you fill in those particular items of the notification form?

[sundaymorningstaple]

SE and I are both on the same page. It is also my interpretation as well. According to the PEP application form they want the "Fixed Monthly Salary" and the definition of same according to the MOM is as linked....

http://www.mom.gov.sg/foreign-manpower/ ... alary.aspx

So, if your transportation allowance is not subject to change (e.g., not reimbursement for oversea travel and subject to changes) then that and if you receive a fixed dollar housing allowance that should also be included. However, if you receive paid for accommodation, e.g., the employer actually pays your rent and hold the rental contract, then you cannot include it as Fixed Salary.

PEP application asks for Fixed Monthly Salary, not Gross Rate.

[iloverice]

Well, I hope SMS cured your cough. Me, as a newbie dealing with HR matters, I always confused with the terms as well.

[whoisit]

Sorry to hijack this thread but I think it may be relevant. I am in similar circumstances to zzm and my current basic monthly salary is just under the PEP requirement. I also receive a fixed monthly retirement allowance which takes my fixed monthly salary above the minimum required. So I am thinking of applying.

My question though is if there is any requirement that says one has to get this monthly salary for a period of time before applying? It doesn't say anything about this on the MOM site. My salary came into the PEP zone since I got a raise 2 months ago and I have 2 months worth of payslips and bank statements to show for it. The application asks to submit 3 months worth of payslips, which means my salary won't be above 12k for one of those months. Any thoughts?

You might be thinking why not wait for another month and then apply but my company is in the midst of a major reshuffle and some of the positions are being moved across to another Asian city. I am fairly confident that I won't be impacted but you never know. So I am thinking of plan B just in case. I will greatly appreciate any help.

[sundaymorningstaple]

I can tell you this much. They are looking for reasons to bounce applications, left, right & centre. They have ALWAYS had a penchant for ensuring all applications have ALL the 'i's dotted and 't's crossed. Don't give them a reason to bounce your application because you cannot follow directions. When in doubt, always err on the side of more and correct information and never less when dealing with Singapore civil servants. Do so at your own risk. They don't care one iota about companies reshuffling or your reasons for not following their specific instructions.

[Wd40]

Sorry to hijack this thread but I think it may be relevant. I am in similar circumstances to zzm and my current basic monthly salary is just under the PEP requirement. I also receive a fixed monthly retirement allowance which takes my fixed monthly salary above the minimum required. So I am thinking of applying.

My question though is if there is any requirement that says one has to get this monthly salary for a period of time before applying? It doesn't say anything about this on the MOM site. My salary came into the PEP zone since I got a raise 2 months ago and I have 2 months worth of payslips and bank statements to show for it. The application asks to submit 3 months worth of payslips, which means my salary won't be above 12k for one of those months. Any thoughts?

You might be thinking why not wait for another month and then apply but my company is in the midst of a major reshuffle and some of the positions are being moved across to another Asian city. I am fairly confident that I won't be impacted but you never know. So I am thinking of plan B just in case. I will greatly appreciate any help.

From the link SMS shared, you will notice that retirement benefits is not included in the Fixed Monthly Salary.

My company too pays us the equivalent of employment contribution to CPF, but when I applied for PR, that amount didnt get included in the fixed monthly salary

[whoisit]

SMS.. As usual thanks for a very helpful reply.

WD40.. I should have clicked that link but thanks for pointing it out and after reading that it looks like I won't be eligible after all.

Strange though the allowance cannot be counted as it is fixed and goes straight into my bank account. It was something extra I negotiated with the company and did not care in which bucket they put it as long as I was given an allowance.

Anyway we live and learn. Thanks for your help.

[zzm9980]

Well, I hope SMS cured your cough. Me, as a newbie dealing with HR matters, I always confused with the terms as well.

Yes, it's feeling better

[zzm9980]

If you were on it at the end of last year, what did you fill in those particular items of the notification form?

I put in the wrong amount I realize now

Thanks SE and SMS. This will keep my life one bit less complicated for the short term.

[Strong Eagle]

There is one more way you can look at this. Is the money you receive taxable as income (in addition to being regular, continuous, etc)? For example, travel expense would be a reimbursement and not taxable. Transportation allowance would be taxable as income, as would tuition assistance, etc.

[zzm9980]

I'm not sure why I mistakenly assumed I couldn't include this for so long. Made me worry about a lot of nothing. I guess local HR telling me I couldn't didn't help.

Thanks!