This videography report on wages in Singapore and the progress of employers in restructuring their wage system to be more flexible and performance-based. The findings are from a survey which effectively covered some 3,600 private establishments each employing at least 25 workers.
Firms are encouraged to implement key wage recommendations for flexible wage system based on the following:
- Implement variable bonus linked to Key Performance Indicators (KPI)
– Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization.
- Introduce Monthly Variable Component (MVC) in wage restructure
– MVC is a “standby” component to be used by employers to bring down wage costs in sudden and severe business downturns to survive and save jobs. Monthly Variable Component ((MVC) forms part of monthly basic salary. It is to be included in computing overtime payment and CPF contribution.