SINGAPORE: For a second year running, Singapore banks OCBC and UOB will give one-off payments to their junior employees to help alleviate cost-of-living pressures, the two banks said on Monday (Dec 23).
OCBC announced in a news release on Monday that it would be making the payment in 2025, with a total estimated payout of S$7.5 million (US$5.54 million) helping close to 11,000 employees across OCBC and its subsidiaries, including Bank of Singapore and OCBC Securities.
Specifically in Singapore, about 4,000 junior employees will receive S$1,000 each, including new entrants to the workforce and unionised employees. This represents close to 40 per cent of the total number of employees based in Singapore.
OCBC said that for its employees outside Singapore, the one-off support takes into consideration the respective local market conditions. Eligible employees can expect to receive the payout from February to April 2025.
In response to CNA's queries, UOB said on Monday that it will provide its junior employees with an extra month of bonus to help them cope with their day-to-day expenses.
"This additional bonus of up to S$8 million for about 6,000 eligible employees across the group will be paid out by April 2025," said UOB's head of group human resources Dean Tong.
"We are cognisant that even though inflation rate has moderated, cost of living remains elevated," he added.
When asked if DBS would be providing a one-off bonus to its employees, it said: "DBS is committed to ensuring our employees are well-supported through our holistic employee value proposition.
"We also constantly review our employee compensation to ensure it is competitive to the market."
While core inflation is expected to decline in 2025, the forecasted rate of 2 per cent remains higher than the 1.1 per cent seen during the pre-pandemic years from 2015 to 2019, said OCBC.
“Price levels also remain high due to the earlier increases in inflation," the bank added.
OCBC's head of group human resources Lee Hwee Boon said cost-of-living concerns persist despite inflation being forecast to moderate in 2025.
"The well-being of our people remains a top priority, so we hope that this one-off payment will ease concerns over the high living costs faced by our junior colleagues," she said.
"Beyond that, we are committed to providing upskilling and reskilling opportunities to ensure that our colleagues are equipped to meet the challenges of the future, while also empowering them to take charge of their own financial well-being."
UOB's Mr Tong said on Monday that it will continually review and enhance its wage structure to ensure that it is fair and competitive.
"This is complemented with our holistic range of perks and benefits that are sustainable for the long term, including enhanced medical support, training programmes and staff housing loans,” he said.
"Human capital is our greatest asset and we are committed to ensuring that we provide holistic support for our employees, including taking care of their career development, as well as wellness and welfare," Mr Tong added.
This will be the second year in a row that OCBC and UOB are giving one-off payments to help junior employees cope with the costs of living.
Earlier this year, OCBC gave a S$1,000 one-off payment to its junior employees in Singapore, following a 2023 recommendation by the National Wages Council (NWC).
DBS and UOB also provided similar payments for staff this year.
While NWC did not call for a one-off payment this year, it was noted in its guidelines that employers who have done well should reward staff with built-in wage increases and variable payments.
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OCBC announced in a news release on Monday that it would be making the payment in 2025, with a total estimated payout of S$7.5 million (US$5.54 million) helping close to 11,000 employees across OCBC and its subsidiaries, including Bank of Singapore and OCBC Securities.
Specifically in Singapore, about 4,000 junior employees will receive S$1,000 each, including new entrants to the workforce and unionised employees. This represents close to 40 per cent of the total number of employees based in Singapore.
OCBC said that for its employees outside Singapore, the one-off support takes into consideration the respective local market conditions. Eligible employees can expect to receive the payout from February to April 2025.
In response to CNA's queries, UOB said on Monday that it will provide its junior employees with an extra month of bonus to help them cope with their day-to-day expenses.
"This additional bonus of up to S$8 million for about 6,000 eligible employees across the group will be paid out by April 2025," said UOB's head of group human resources Dean Tong.
"We are cognisant that even though inflation rate has moderated, cost of living remains elevated," he added.
When asked if DBS would be providing a one-off bonus to its employees, it said: "DBS is committed to ensuring our employees are well-supported through our holistic employee value proposition.
"We also constantly review our employee compensation to ensure it is competitive to the market."
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COST-OF-LIVING CONCERNS PERSIST
While core inflation is expected to decline in 2025, the forecasted rate of 2 per cent remains higher than the 1.1 per cent seen during the pre-pandemic years from 2015 to 2019, said OCBC.
“Price levels also remain high due to the earlier increases in inflation," the bank added.
OCBC's head of group human resources Lee Hwee Boon said cost-of-living concerns persist despite inflation being forecast to moderate in 2025.
"The well-being of our people remains a top priority, so we hope that this one-off payment will ease concerns over the high living costs faced by our junior colleagues," she said.
"Beyond that, we are committed to providing upskilling and reskilling opportunities to ensure that our colleagues are equipped to meet the challenges of the future, while also empowering them to take charge of their own financial well-being."
UOB's Mr Tong said on Monday that it will continually review and enhance its wage structure to ensure that it is fair and competitive.
"This is complemented with our holistic range of perks and benefits that are sustainable for the long term, including enhanced medical support, training programmes and staff housing loans,” he said.
"Human capital is our greatest asset and we are committed to ensuring that we provide holistic support for our employees, including taking care of their career development, as well as wellness and welfare," Mr Tong added.
This will be the second year in a row that OCBC and UOB are giving one-off payments to help junior employees cope with the costs of living.
Earlier this year, OCBC gave a S$1,000 one-off payment to its junior employees in Singapore, following a 2023 recommendation by the National Wages Council (NWC).
DBS and UOB also provided similar payments for staff this year.
While NWC did not call for a one-off payment this year, it was noted in its guidelines that employers who have done well should reward staff with built-in wage increases and variable payments.
Continue reading...