Information Extracted From MOM
Posted by admin on Nov 18, 2009
This post was extracted from MOM, about calculation of salary. We hope that with this post, it will help to reduce your confusion on how to calculate the salary with more detail.
EMPLOYMENT ACT
SOME COMMONLY ASKED QUESTIONS ON CALCULATION OF SALARY
The Employment Act covers all employees except those employed in a managerial and executive position, seaman, domestic worker and employees of statutory board or the government.
Calculation of Salary
“BASIC Rate vs GROSS Rate”
1. What is “Basic rate of pay”?
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“Basic rate of pay” is the total amount of money (including wage adjustments and increments) which an employee is entitled to under his contract of service but does not include overtime payment; bonus payment or annual wage supplement (AWS), any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment, productivity incentive payment; and any allowance however described.
2. What is the “Basic rate of pay” used for?
The “Basic rate of pay” is used to calculate pay for work on rest days, work on public holidays and overtime work.
For a monthly-rated employee who works on a rest day or a public holiday, the Basic rate of pay for 1 day is calculated as follows:
12 X Monthly Basic rate of pay
52 X Average No. of days an employee is
required to work in a week
For a monthly-rated employee who performs overtime work, the hourly Basic rate of pay is calculated as follows:
12 X Monthly Basic rate of pay
52 X 44
3. What is “Gross rate of pay”?
The “Gross rate of pay” is the total amount of money including allowances which an employee is entitled to under his contract of service, but does not include overtime payments, bonus payments or annual wage supplements (AWS), any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment, productivity incentive payments and travelling, food or housing allowances.
4. What is “Gross rate of pay” used for?
The “Gross rate of pay” is used to calculate payment of salary in lieu of notice of termination, deduction of pay for absence from work, paid holidays, paid annual leave, paid sick leave and paid maternity benefits.
For a monthly-rated employee, the Gross rate of pay for 1 day is calculated as follows:
12 X Monthly Gross rate of pay
52 X Average No. of days an employee is
required to work in a week
5. What is “Productivity incentive payment”?
“Productivity incentive payment” means a variable payment, whether made annually or otherwise, to an
employee as a reward for an improvement in that employee’s performance or an increase in the employee’s productivity or contribution to the employer’s business, trade or undertaking.
6. Can certain allowances such as shift and attendance allowances be considered as “Productivity incentive payments” and be excluded from the “Gross rate of pay”?
If the payment of the allowance incorporates features of an incentive scheme which fall within the definition of a “Productivity incentive payment”, it could be excluded from gross rate of pay. Shift and attendance allowances are paid to employees for carrying out shift duties and keeping good attendance respectively.They do not fall within the definition of a “Productivity incentive payment” and are considered part of “Gross rate of pay”.
7. If a company operates on rotating shifts with different rates of shift allowance, how should the allowance be computed in working out an employee’s “Gross rate of pay” when he goes on annual leave?
Employers may consider using any of the following methods:
(a) Standardise the rate by working out a simple average as shown in the example below:
1st shift - no allowance
2nd shift - $5
3rd shift - $10,
Average allowance per shift: 0+5+10 = $5
3
Hence, when an employee goes on leave, he is to be paid shift allowance of $5 for each day of his
leave, irrespective of the shift on which he is rostered to work.(b) Continue to pay the allowance as though the employee has worked for the day. Using the same example in 7(a), if the employee goes on leave when he is rostered to work on the 1st shift, he is not paid any shift allowance, but if he goes on leave when he is rostered to work on the 3rd shift, he is paid $10.Companies may also use other methods as long as they are fair and reasonable.
8. How do I calculate the salary of a monthly- rated employee who has only worked part of the month?
An employee may work an incomplete month if:
• he commenced employment after the first day of the month;
• his employment was terminated before the end of the month;
• he has taken no pay leave during the month; or
• he has taken leave of absence to perform his national service under the
Enlistment Act.
In such cases, the salary payable to him is pro-rated as follows:
Monthly Gross Rate of Pay x
• If the number of working hours in any working day is 5 hours or less, regard it as a half-day. If it is more than 5 hours, regard it as one day.
• Number of days the employee actually worked
• Number of days which the employee is in that month
required to work in that month (includes public holiday if he is entitled to holiday pay but excludes rest days and non-working days)
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Flexi Works Scheme
Posted by admin on Nov 3, 2009
Flexi-Works! is an initiative by the Singapore Workforce Development Agency (WDA) and the National Trade Union Congress (NTUC) for companies to hire new workers on part-time or flexible work arrangements. The scheme offers a grant of up to $100,000 to support a company’s efforts in the recruitment of workers on part-time or flexible work arrangements. The programme has been enhanced and extended to run for another year from 1 Mar 2009.
Enhancement to Flexi-Works!
Enhancements to the Flexi-Works! Scheme included the following:
• Previously, workers to be recruited must be aged 35 & above. Under the revised scheme, this age criterion has been lowered and workers to be recruited need only be aged 30 & above
• In addition to encouraging the hire of economically inactive workers, Flexi-Works! now also include a tranche of funding dedicated specifically to help companies introduce flexible work arrangement.
• Extension of the scheme to run for another year starting from 1 Mar 2009
The Flexi-Works! scheme will also be extended till 31 March 2010.
Enhanced Flexi-Works!
Under the enhanced scheme, funding would be disbursed in 2 tranches as follows:
Tranche 1: Companies can claim up to $10,000 for introducing flexible work arrangements in the organisations. Dr. Dolittle: Tail to the Chief download
For this tranche, companies will have to:
• Send HR staff for MOM-approved Work-Life training;
• Make provision for FWA in their HR policies; and
• Communicate the policy to their staff
Grant Computation
The grant amount will be based on 80% of actual cost incurred, and will work on a reimbursement system, capped at $10,000 per company.
This tranche is common to the first tranche of WoW! Fund. Each applicant can only tap on this tranche once, either under the WoW! Fund or Flexi-Works! programmes. However, they are still eligible to tap on the 2nd tranche of both schemes.
Tranche 2: Companies are entitled up to $90,000 for recruiting eligible workers on part-time or Flexible Work Arrangements. Rush Hour 2 film
For this tranche, companies would have to:
• Fulfill the requirements of Tranche 1;
• Recruit workers with the following two requirements
o Aged 30 and above
o Singaporeans and/or Singapore Permanent Resident
Grant Computation
The grant amount will be based on:
• Number of workers recruited on part-time or flexible working arrangements and retained for at least 2 months multiplied by $1,800; OR
• 80% of the actual project costs, whichever is the lower, subject to a cap of $90,000 per company. Companies should aim to achieve their recruitment target 6 months from the date of approval for their application.
What can the Grant be used for?
• The grant can be used for costs incurred for job redesign, consultancy, recruitment, training, absentee payroll and equipment, to put in place part time or flexible working arrangements.
• The grant cannot be used for any form of retention bonus or salary support as well as on-the-job training.
Should you interested to find out more information on the above scheme, please contact ,
Evelyn Chng / Brian Ng / Michelle Chong
361 Degree Consultancy Pte Ltd
Customer Service Hotline: 3152 3152
Email: enquiry@361dc.com
FAQs:
What are the qualifying criteria?
Companies can apply if:
1. They intend to create jobs that are part-time or flexible in nature;
2. Intend to hire NEW workers. These workers have to fulfill the following requirements:
i) Singaporeans or Singapore PRs; and
ii) aged 30 and above.
What costs can I claim?
The grant will support costs incurred by the company for job re-design, consultancy, recruitment, training, absentee payroll, equipment and materials associated with making part time and flexible work arrangements possible. This can include one time cost of buying additional sets of uniforms, tools, materials, etc that arise because of part time work arrangements.
However, companies cannot claim against recurrent manpower cost or staff holding cost, such as wages, medical benefits, insurance, staff welfare.
How will the grant be computed?
For Tranche 1, the grant amount will be based on 80% of actual cost incurred, and will work on a reimbursement system, capped at $10,000 per company.
For Tranche 2, the eligible grant for each company will be based on
• Number of workers recruited on part-time or flexible working arrangements and retained for at least 2 months multiplied by $1,800; OR
• 80% of the actual project costs, whichever is the lower, subject to a cap of $90,000 per company.
What is the definition of a “part-time worker”?
A part-time worker is defined as an employee who is required under his contract of service with an employer to work less than 35 hours a week.
What is the definition of “flexible work arrangements”?
Flexible work arrangements include flexi-time, permanent part-time work, job-sharing, compressed work-week, tele-working or annualised work hours.
I am the owner of a small retail shop in the HDB heartland and in the process of recruiting two female workers to work on part-time basis. Can I apply for the grant?
Yes you can apply for the grant.