Quick answer
The 13th month bonus in Singapore is commonly known as the Annual Wage Supplement, or AWS. It is a single annual payment on top of an employee’s regular annual wages. AWS is generally not required by law unless it is stated in the employment contract, company handbook or collective agreement.
What is the 13th month bonus in Singapore?
A 13th month bonus is an additional annual payment that is commonly linked to one month of salary. In Singapore, it is more formally known as the Annual Wage Supplement. It is usually paid near the end of the year, although the actual payment month depends on the employer’s policy and employment terms.
Annual Wage Supplement
AWS is the common Singapore term for the 13th month payment. It is paid in addition to the employee’s normal monthly wages.
One annual payment
It is usually paid once a year. Many employees receive it around November, December or the following payroll cycle.
Terms matter
Eligibility, amount, payment date and pro-ration depend mainly on the employment contract, handbook or collective agreement.
Is the 13th month bonus compulsory in Singapore?
For most employees, AWS is not automatically compulsory. The employer normally has to pay it only when the employee is entitled to it under the relevant employment terms.
| Situation | Is AWS normally payable? | What to check |
|---|---|---|
| AWS stated clearly in employment contract | Generally yes, subject to the stated conditions | Amount, eligibility period, payment date and forfeiture clauses |
| AWS stated in company handbook or policy | Depends on whether the policy forms part of the employment terms | Wording of the policy and whether the employer reserves discretion |
| AWS stated in collective agreement | Generally according to the agreement | Union agreement, eligibility and pro-ration provisions |
| No AWS mentioned anywhere | Usually not automatically required | Past company practice and any written communication from the employer |
AWS vs performance bonus
Employees often use “13th month bonus”, “AWS” and “year-end bonus” interchangeably, but the payments can have different purposes.
| Item | Annual Wage Supplement | Performance Bonus |
|---|---|---|
| Main purpose | An additional annual wage payment, commonly linked to one month of salary | Reward for individual, team or company performance |
| Amount | Often one month or a pro-rated amount, depending on the terms | May be fixed, formula-based or fully discretionary |
| Compulsory? | Only when required by the relevant employment terms | Only when required by the relevant employment terms |
| Performance-based? | Not necessarily | Usually yes |
| CPF and tax | Generally subject to applicable CPF and tax rules | Generally subject to applicable CPF and tax rules |
How is the 13th month bonus calculated?
There is no single calculation that applies to every employee. The contract may provide one full month of basic salary, one month of another salary definition, or a pro-rated amount based on completed service.
Full-year employee
If the contract provides one month of basic salary and the employee served the full qualifying year, AWS may equal one month of basic salary.
Joined during the year
The payment may be pro-rated according to completed months or days of service, but only if the employment terms provide for it.
Salary changed
The employer may use last-drawn basic salary, average salary or another contractual formula. Check the exact wording.
Simple pro-rated AWS formula
Estimated AWS = Monthly salary used by the company × Eligible months of service ÷ 12. This is a planning example only. Your employer may use a different formula under the contract or company policy.
13th month bonus calculation examples
These examples assume the employer provides one month of basic salary and uses a simple monthly pro-ration method.
| Monthly Basic Salary | Eligible Service | Illustrative Formula | Estimated AWS |
|---|---|---|---|
| S$3,000 | 12 months | S$3,000 × 12 ÷ 12 | S$3,000 |
| S$4,000 | 9 months | S$4,000 × 9 ÷ 12 | S$3,000 |
| S$5,000 | 6 months | S$5,000 × 6 ÷ 12 | S$2,500 |
| S$6,000 | 3 months | S$6,000 × 3 ÷ 12 | S$1,500 |
Is CPF payable on the 13th month bonus?
Cash bonuses paid to eligible Singapore Citizens and Singapore Permanent Residents generally attract CPF contributions. A 13th month payment is normally treated as Additional Wages for CPF purposes and is subject to the Additional Wage ceiling.
Employee CPF
The employee’s CPF share may be deducted from the AWS, reducing the cash amount received.
Employer CPF
The employer generally contributes its share separately, subject to the applicable CPF rate and wage ceiling.
Additional Wage ceiling
For 2026, the CPF Additional Wage ceiling is generally S$102,000 minus total Ordinary Wages subject to CPF for the year.
AWS CPF example
This simplified example assumes an employee aged 55 and below under full CPF rates, with sufficient Additional Wage ceiling available.
| Item | Example Amount | Explanation |
|---|---|---|
| Gross AWS | S$5,000 | One month of basic salary |
| Employee CPF at 20% | S$1,000 | Illustrative employee CPF deduction |
| Cash AWS before tax | S$4,000 | Gross AWS less employee CPF |
| Employer CPF at 17% | S$850 | Paid separately by the employer |
Is the 13th month bonus taxable?
Yes. AWS and other employment bonuses are generally taxable employment income in Singapore. A contractual 13th month payment is normally taxed according to when the employee becomes entitled to it under the contract.
Taxable employment income
The gross bonus generally forms part of your employment income for Singapore income tax purposes.
Before CPF deduction
Employment income is generally reported before deducting the employee’s CPF contribution.
AIS employers
If your employer is under the Auto-Inclusion Scheme, the employment income information is generally submitted to IRAS for you.
Do you get AWS if you resign?
Resigning before the AWS payment date does not create one universal result. Your entitlement depends on the written employment terms. Some employers pro-rate AWS, while others require the employee to remain employed on the payment date.
Contract provides pro-ration
You may receive a pro-rated payment based on eligible service, subject to the formula and conditions in the contract.
Must be employed on payment date
Some terms require the employee to still be employed and not serving notice when the AWS is paid.
No resignation clause
Review the full contract, handbook and past written communications. Ask HR to confirm the company’s treatment in writing.
Common AWS eligibility situations
The situations below commonly affect whether a full or pro-rated 13th month payment is received.
| Situation | Possible treatment | Key document to check |
|---|---|---|
| Joined during the year | May receive pro-rated AWS or no AWS, depending on the terms | Employment contract and employee handbook |
| Still on probation | Probation may be included or excluded depending on the employer’s policy | Probation and AWS clauses |
| Resigned before payment date | May lose, retain or receive a pro-rated amount depending on the written conditions | Resignation, notice and bonus clauses |
| Took unpaid leave | The eligible service period or salary base may be reduced | Unpaid leave and pro-ration policy |
| Company performed poorly | The employer may seek to negotiate a lower AWS in exceptional circumstances | Contract, collective agreement and employer communication |
How to check whether your offer includes AWS
A job offer showing “S$60,000 annual package” may or may not include a 13th month payment. Always ask how the annual package is divided before comparing offers.
Check the salary wording
Look for terms such as basic monthly salary, annual base salary, AWS, 13th month payment and variable bonus.
Ask whether it is guaranteed
Confirm whether AWS is contractual, discretionary, performance-linked or subject to company results.
Compare guaranteed pay
Separate guaranteed monthly salary and contractual AWS from discretionary performance bonuses.
Estimate your total annual salary
Use our salary tools to compare monthly salary, CPF deductions, bonus income and estimated take-home pay.
Why trust this AWS guide?
SG Salary Tools explains Singapore salary, CPF and employment topics using plain-language examples. This guide is for general planning and should be checked against your own contract and official government sources.
Singapore-focused
The guide uses Singapore terms such as AWS, CPF Additional Wages and employment contract conditions.
Practical examples
Full-year and pro-rated illustrations help employees understand how a possible payment may be calculated.
Official references
Key employment, CPF and tax points are linked to MOM, CPF Board and IRAS resources.
Related Singapore calculators
Use these tools to estimate salary, CPF, income tax and monthly take-home pay.
Related Singapore salary guides
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Frequently Asked Questions
What is a 13th month bonus in Singapore?
It is commonly known as the Annual Wage Supplement or AWS. It is a single annual payment made on top of the employee’s normal annual wages.
Is the 13th month bonus compulsory in Singapore?
Generally, no. AWS is not automatically required by law. It is usually payable only when the employment contract, company handbook or collective agreement provides for it.
Is AWS the same as a performance bonus?
No. AWS is commonly an additional annual wage payment, while a performance bonus is usually linked to individual, team or company performance. An employer may pay both.
How much is the 13th month bonus?
It is often described as one month of salary, but the exact amount and salary base depend on the employment terms. It may also be pro-rated for employees who did not serve the full qualifying year.
Is CPF payable on the 13th month bonus?
CPF is generally payable on cash bonuses for eligible Singapore Citizens and Permanent Residents. AWS is normally treated as Additional Wages and is subject to the Additional Wage ceiling.
Is the 13th month bonus taxable in Singapore?
Yes. AWS and other employment bonuses are generally taxable employment income. The relevant tax year for a contractual bonus depends on when the employee becomes entitled to it under the contract.
Do foreigners receive a 13th month bonus?
Foreign employees may receive AWS if their employment terms provide for it. CPF generally does not apply to foreign employees, but Singapore income tax may still apply depending on the employee’s tax position.
Do I get AWS if I joined during the year?
It depends on the contract or company policy. Some employers provide a pro-rated AWS, while others impose a minimum service period or require the employee to be confirmed.
Is probation included when calculating AWS?
There is no universal rule. The employment contract, company handbook or collective agreement determines whether probation counts toward AWS eligibility and pro-ration.
Do I get AWS if I resign before December?
It depends on the written conditions. Some employers pay a pro-rated AWS, while others require the employee to remain employed on the payment date or not be serving notice.
Can an employer reduce AWS?
MOM states that an employer can negotiate a lower AWS if business results are exceptionally poor. The employer should also consider any contractual or collective agreement obligations.
Is this 13th month bonus guide official?
No. SG Salary Tools provides general salary and employment planning information only. For exact entitlement, check your contract and the latest guidance from MOM, CPF Board and IRAS.