Purpose
Annual Wage Supplement (AWS) is a most common business practice in most companies in Malaysia, as well as other Asian countries). It is also known as the 13th month. It represents a single annual payment to employees that is supplementary to the total amount of annual wages earned by them.
AWS is treated similarly to a bonus payment dependent on an employee's basic pay.
Features
The following options are available:
You can determine whether the calculation of the AWS amount is based on an employee's basic pay in a given payroll period or his average basic pay over several payroll periods.
The latter method can only be used if values for average basic pay were created during payroll processing.
You can determine a factor by which the calculation base is multiplied to provide the actual amount of the AWS payment.
You can determine whether AWS is to be paid in a single period or over multiple periods. For each AWS payment, you can specify whether it is to be included in the regular payroll run of the respective period, or whether it is to be paid in a special, off-cycle payroll run. The latter enables you to create flexible payment models.
You want to pay 40% of an employee's AWS immediately upon calculation, while the rest is to be paid in the regular payroll run. This means that the former part amount (40%) is paid outside the regular payroll interval, thus making an off-cycle run necessary.
You can define special calculation rules for employees who leave the company during the period for which AWS calculation is carried out. Alternatively, you can exclude these employees from AWS altogether.
If an employee has not worked in the company for the whole year, you can determine how the AWS payment is to be pro-rated.
Pro-rate according to the number of months or calendar days that the employee has actually worked.
You can define special calculation rules for employees whose probation period has not yet ended by the time AWS is calculated.
No AWS or AWS only paid on confirmation of employment.
You can specify a minimum and a maximum amount for the AWS payment. Alternatively, you can decide that a fixed amount is to be paid, overruling the calculation based on an employee's basic pay.