In a bid to alleviate ongoing cost-of-living concerns, Singapore banks OCBC and UOB have announced plans for one-off financial support aimed at their junior employees. This will mark the second consecutive year that these banks have taken such measures, indicating a commitment to supporting their workforce.
OCBC’s Generous Payout
OCBC revealed that around 4,000 junior employees in Singapore will receive S$1,000 each, with the total estimated payout amounting to S$7.5 million. This initiative will benefit nearly 11,000 employees across various markets where OCBC operates. The payments are scheduled to be disbursed between February and April 2025 and will also be adjusted based on local market conditions for employees outside Singapore.
UOB’s Bonus Initiative
Similarly, UOB will provide an additional month’s bonus to about 6,000 junior employees, with a total payout of up to S$8 million. Dean Tong, UOB’s head of group human resources, emphasised that while inflation has moderated, the cost of living remains high, prompting this extra support. Disbursement of this bonus will also occur by April 2025.
Acknowledging Economic Challenges
Despite expectations of a decline in core inflation, projected rates for 2025 still suggest persistent cost-of-living pressures for many residents. Lee Hwee Boon, OCBC’s HR head, highlighted that ensuring employee well-being is a top priority, stating, “We hope that this one-off payment will ease concerns over the high living costs faced by our junior colleagues.”
Looking Ahead
The National Wages Council (NWC) has also noted the need for employers to reward employees appropriately, even if they did not mandate one-off payments this year. Both banks, however, have chosen to extend support to their staff as a recognition of the ongoing economic challenges.
Staying ahead in competitive employee compensation remains a crucial focus for both banks, as they strive to balance the needs of their employees with evolving market conditions.