Job Offer with end of year 'bonus'

[CaroMass]

Hi gang new to singapore.
Hope you can help me I've got a job offer of $6500 p/mth with a discretionary end of year bonus. I've been told by another friend that lives here that its not a bonus it's the 13th month pay that they owe you for the year.
Am I get sold on a fake 'bonus' that everyone gets? And is $6500 enough for a female (Single with no kids) what would be my monthly take home after tax?
Thanks

[PNGMK]

Tax is paid at the end of year (actually following April) so your take home is the full amount. Total tax I'd estimate will be very low - $500 for the year.

Your rent is the issue - if you can rent a room you'll make enough.

The 13th month is optional - so it can be called a bonus - and if it's variable you'd expect it to be 1.0 to a higher number multiple of a months salary depending on performance of the company and individual.

[sundaymorningstaple]

I reckon less than half of the companies in Singapore pay a "13th month bonus" anymore. Most companies now pay bonuses based on performance of the individual and of the company itself. The 13th month was a holdever from when the British were still administering the island and paid every 2 weeks. When most went to monthly payrolls, they continued to pay the same amount you normally got every two weeks and the difference was paid up at the end of the year and the left over 4 weeks accumulated was paid as a 13th month's salary (not even considered a bonus back in those days). Most companies now just call it a year end bonus and is no longer a carryover from the switchover from bi-weekly to semi-monthly/monthly payrolls.

Actually, unless you are working for an MNC or large SME, I'd be prepared to see smaller locally owned companies paying less than one month this year as they try to recoup some of their costs of increased levies for S pass holders and WP holders. My payroll costs jumped almost 10% in 2012 and I reckon it's going to be a little harder for 2013 as well.

[AngMoG]

Tax on $6500 per month is more like $2000-3000 (for the whole year). You can put it into the tax calculator on the IRAS website to check.

For the bonus, it is completely up to the company, and afaik there is no law about it. So the same applies as for everything else in employment matters here: whatever is in your contract goes. So in that case, have low expectations, and any bonus is a good one

[CaroMass]

Thanks for the responses.
So until tax time when I have to pay the tax (ie. April) ill be getting exactly $6500 at the end of every month? And yes any bonus is a good bonus but not if they are using it as a negotiation tool and you never know they could just be saying it sign me up on just under what I'm asking for - then not give the 13th month 'bonus'
Interesting that some people think that $6500 p/mth is only "okay" income for an expat whose single with no kids.

[sundaymorningstaple]

The median income for a family of four is around the same amount here in Singapore for a local family. They manage and also manage to buy a flat, albeit with subsidies. But if you are single and prudent you can save 2/3s of that amount. Or more if you've a mind to.

[blue_thunder]

Thanks for the responses.
So until tax time when I have to pay the tax (ie. April) ill be getting exactly $6500 at the end of every month? And yes any bonus is a good bonus but not if they are using it as a negotiation tool and you never know they could just be saying it sign me up on just under what I'm asking for - then not give the 13th month 'bonus'
Interesting that some people think that $6500 p/mth is only "okay" income for an expat whose single with no kids.

If you are employed by one company and deputed to a client place( mostly happens in IT) then the parent company tends to hold 10-15% for tax(which is still higher) in advance. This will be mentioned clearly in the offer letter.

They will eventually return the balance amount it after paying the taxes in the following year. It is better if you clarify this with the company.

+ discretionary bonus is always discretionary, based on company performance.
If the company's financial results are bad then chances are very very less for a bonus component.
Gone are the days where the bonus offered in the financial companies were in 5-6 digits / annum

[livingontheedge]

Generally companies in Singapore pay the AWS bonus (which is the 13 month pay) and Variable bonus. The Variable bonus is based on performance of the individual and the Company at large, which is at discretion of management. As long as the Company you work for is a financially healthy and performing well, you would get both Bonus.

$6,500 is decent salary for single person. Can live well. Taxation would approx. $2k.

[AngMoG]

Generally companies in Singapore pay the AWS bonus (which is the 13 month pay) and Variable bonus. The Variable bonus is based on performance of the individual and the Company at large, which is at discretion of management. As long as the Company you work for is a financially healthy and performing well, you would get both Bonus.

$6,500 is decent salary for single person. Can live well. Taxation would approx. $2k.

Source? In my experience so far, I have never had AWS, and I do not know anyone who did. There is no law about it, so I would think that most companies (esp SMEs) will not pay AWS. As for bonus, that really depends on the company, and can be from a few hundred to 1-2x salary.

[therat]

There are no law stated that company must paid AWS but it was quite common practise in Singapore market. However I know some trade/company don't give but it never happen to me.
All 7 previous and present company that I had work with, all give AWS.
None of them are SME.

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

The Annual Wage Supplement (AWS) is commonly known as the 13th month payment. It is a single annual payment to employees that supplements the total amount of annual wage earned by them.

Payment of AWS depends on the contractual agreement between the employer and the employee i.e. whether it is provided for in the employment contract or collective agreement.

If it is not stipulated in the employment contract, AWS payment is subject to negotiation and mutual agreement between the employer and employee, or the trade union representing the employee.

[the lynx]

There are no law stated that company must paid AWS but it was quite common practise in Singapore market. However I know some trade/company don't give but it never happen to me.
All 7 previous and present company that I had work with, all give AWS.
None of them are SME.

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

The Annual Wage Supplement (AWS) is commonly known as the 13th month payment. It is a single annual payment to employees that supplements the total amount of annual wage earned by them.

Payment of AWS depends on the contractual agreement between the employer and the employee i.e. whether it is provided for in the employment contract or collective agreement.

If it is not stipulated in the employment contract, AWS payment is subject to negotiation and mutual agreement between the employer and employee, or the trade union representing the employee.

Yep. Same here.

[blue_thunder]

Generally companies in Singapore pay the AWS bonus (which is the 13 month pay) and Variable bonus. The Variable bonus is based on performance of the individual and the Company at large, which is at discretion of management. As long as the Company you work for is a financially healthy and performing well, you would get both Bonus.

$6,500 is decent salary for single person. Can live well. Taxation would approx. $2k.

AFAIK, international banking/finance related organisations have no concept of AWS. But the local mid-large companies do have AWS like HP,Sony,Crimson etc.

[Wd40]

Yeah, Banks have only bonuses. In the hay days, people used to get like 4-6 months salary as bonus, but last couple of years, only lucky ones get like 1 month.

I heard companies in the shipping, electronics industry etc give you like huge bonuses sometimes even 12 months salary as bonuses, but then they often make you work overtime, even on weekends etc. Their base salaries are very low though.

[ray88]

I personally feel that AWS is good. If it is stated in your contract, then at least u know you will confirm get the 1 month bonus. However, not many companies has this AWS scheme. Even lesser of them has both AWS + perfomance bonus.

From what I know, some companiese performance ranges from 0.5month to 3months. (Engineering or Shipping industry would have higher bonus.. Probably 3mths-6mths)