Thursday, December 1, 2011

The 13th Month Bonus is a Right?

Many people have been sharing this blog post on 'The Coveted 13th Month 'Bonus' in Singapore'. It seems that many agree with him, considering the number of shares on Facebook. His arguments are interesting, I must admit. I have never thought about our wages in this way. But then again, I don't think that is the intent of employers - to shortchange employees by one month. 

The employer can always justify the monthly pay by determining how much you should be paid annually, then divide it by 12. For example, they may offer you an annual salary of $36,000. To make it simple, they pay you $3,000 a month. This smoothens out the irregularities in monthly pay due to the number of days in that particular month. To put it in perspective, this is similar to offering you $692.31 a week. 

So in his case, he will complain about being paid $3,000 a month and argue that he should be paid an extra $3,000 a year (let's ignore the extra one day for simplicity). This makes his annual pay $39,000. But as I just mentioned, maybe his employers only intended to pay him $36,000 a year. So if he makes noise about being paid monthly, they can just pay him $692.31 a week to shut him up.

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