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13th month pay
in Singapore

SALARY PAYMENT IN Singapore Dollar (SGD)

CONTRACT LANGUAGES English

PAYROLL TAX 22%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

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.

Hiring in Singapore, Made Easy

Your business can easily hire employees in Singapore without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

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.

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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