Do We Need to Pay End-Of-Year Payment to Employee?

In general, we need to pay end-of-year payment to employees who are employed under a continuous contract. In that case, we need to pay the end-of-year payment, such as "double pay" or "bonus", as a form of end-of-year payment, according to employment contract.

If the amount of end-of-year payment is not specified in the contract, it will be the amount of average monthly wages earned by an employee in past 12 months.

Presumption on End-Of-Year Payment

Please be reminded that for employment with its contract made after 27 June 1997, employer is not allowed to, solely at its discretion, determine whether to pay the end-of-year payment or alter the amount of payment, unless it is specified in the employment contract that the employer has such right.