Thursday, November 21, 2013

Annual wage supplement

In Singapore we get pay by monthly and often depending on jobs, you will have this AWS.

What is AWS? It stands for Annual Wage Supplements but some may call it as 13th Month bonus.

But is this really a Bonus as it out of good will from the company? We will get to that in a while.

In some countries, workers are paid by weekly.

Assuming we have a same job which get the same pay, but one is paid by weekly and one is paid by monthly. You may observed that those who paid by weekly will get more pay. Now let's do some math.


1 Year = 52 weeks
1 Month in general there should be 4 whole weeks

so 4 x 12 Months ( 1 year ideally)  = 48 Weeks

However we all know in a full calender year there are 52 weeks!

So we get 52 - 48 = 4 weeks seems to be missing?!

4 Weeks = 1 Month

By now you may know those who paid by weekly would have get much more. That is where this AWS comes in. As the 13th month.

Thus this AWS should not be a bonus but an entitlement in a way as generally a worker work more number of days like around 20 days a month.

That being said, depend on your country and law, this calculation may vary as end of the day when you accept a job, you agree with the amount of pay you are getting but I hope when it comes to this AWS, you would have a better understanding where it came from.

The last thing to remember, this is not suppose to be call a BONUS.



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