Rising costs of living remain a significant concern for many employees in Singapore, and two major banks are stepping up to address this issue. For the second consecutive year, OCBC and UOB are providing one-off bonuses to their junior employees to help alleviate financial pressures. With payouts totaling millions, these initiatives reflect a commitment to employee well-being amidst economic challenges.
OCBC and UOB’s One-Off Bonus Initiatives
OCBC’s Financial Support Plan
OCBC announced on Dec 23 that it will distribute one-off payments to nearly 11,000 employees globally, amounting to an estimated S$7.5 million (US$5.54 million).
- Singapore Impact: About 4,000 junior employees based in Singapore, including new entrants to the workforce and unionized staff, will each receive S$1,000. This accounts for approximately 40% of OCBC’s local workforce.
- Global Considerations: For employees outside Singapore, the bonus will be adjusted based on local market conditions. Eligible employees can expect payouts between February and April 2025.
OCBC’s head of group human resources, Lee Hwee Boon, emphasized the importance of supporting employees amidst elevated living costs: “The well-being of our people remains a top priority, so we hope this one-off payment will ease concerns over high living costs.”
UOB’s Additional Bonus Strategy
Similarly, UOB is offering an extra month’s salary as a one-off bonus for about 6,000 eligible junior employees across the group.
- Financial Commitment: This initiative amounts to up to S$8 million, with bonuses distributed by April 2025.
- Management’s Perspective: Dean Tong, UOB’s head of group human resources, highlighted the bank’s dedication to fair compensation: “We are cognizant that even though inflation has moderated, cost-of-living pressures remain elevated.”
Economic Context: Persistent Cost-of-Living Concerns
While Singapore’s core inflation rate has declined to 1.9% as of November 2024—its lowest in three years—price levels remain high compared to pre-pandemic years.
- Inflation Projections: According to the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI), core inflation is expected to average 2.5-3.0% in 2024 before tapering to 1.5-2.5% in 2025.
- Employer Responses: The National Wages Council (NWC) recommends rewarding employees through wage increases and variable payments for companies that have performed well.
DBS’ Stance on Employee Support
Although DBS has not announced a one-off bonus, the bank reaffirmed its commitment to competitive compensation and holistic employee support. A spokesperson stated: “We constantly review our employee compensation to ensure it is competitive within the market.”
Holistic Employee Welfare: Beyond Bonuses
Both OCBC and UOB emphasize long-term employee welfare through additional benefits:
- OCBC Initiatives:
- Upskilling and reskilling programs to prepare employees for future challenges.
- Empowerment initiatives for financial well-being.
- UOB Programs:
- Enhanced medical benefits.
- Training programs for career advancement.
- Competitive staff housing loans.
“Human capital is our greatest asset,” said Mr. Tong from UOB. “We are committed to taking care of our employees’ career development, wellness, and welfare.”
Why These Bonuses Matter
This marks the second consecutive year that OCBC and UOB have provided financial relief to junior employees. In 2023, both banks distributed one-off payments following a recommendation from the NWC. These continued efforts reflect the banks’ acknowledgment of the ongoing economic challenges and their commitment to supporting their workforce.
Conclusion
OCBC and UOB’s one-off bonuses showcase a proactive approach to addressing cost-of-living pressures while fostering employee loyalty and satisfaction. As inflation remains a concern, such initiatives highlight the importance of corporate responsibility in supporting employees through economic uncertainties.
