13th month pay
in Singapore

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Is there a 13th month pay in Singapore?

Yes, known as the Annual Wage Supplement (AWS), this is a single annual payment commonly made to employees on top of their total annual wage.

How is the 13th month pay calculated in Singapore?

The 13th-month pay is calculated by dividing an employee’s total basic salary for the year by 12.

When is the 13th month salary paid in Singapore?

The 13th-month pay is paid out at the end of the year in Singapore, in time for the Chinese New Year.

Does the 13th month salary amount to any extra payment by the employer?

Normally when an employer makes an offer, they will divide their budget by 13 (12 calendar months, + the 13th month salary).

Is the 13th month salary taxable in Singapore?

Yes, considered a type of bonus by the IRAS, the 13th month pay is taxable in Singapore.

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FAQs

Is the 13th month pay required by law or standard in Singapore

Although it is not mandatory, the 13th month pay, also known as the Annual Wage Supplement (AWS) is a common business practice used by companies in Singapore.

Are there more than 13th months of pay in Singapore?

There are not more than 13 months of pay in Singapore, although employers may reward employees with bonuses and variable payments.

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Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)