SINGAPORE: In a move to alleviate the financial burdens of their junior staff, two of Singapore's leading banks, OCBC and UOB, have announced one-off bonus payments for the second consecutive year. This initiative aims to support employees facing the ongoing challenges of the high cost of living in the city-state.

OCBC revealed on Monday that their one-off payment, scheduled for 2025, will total approximately S$7.5 million (about US$5.54 million), benefiting nearly 11,000 employees across the bank and its subsidiaries, including Bank of Singapore and OCBC Securities. Specifically, around 4,000 junior employees in Singapore will receive S$1,000 each, which accounts for nearly 40% of OCBC's workforce based in the country, including newly hired employees and unionised staff.

For those based outside Singapore, the payout has been tailored to consider local market conditions, ensuring employees receive appropriate support reflective of their circumstances. Eligible staff members can expect to see these funds disbursed from February to April 2025.

UOB has joined OCBC in this employee support effort, announcing an additional bonus equivalent to one month’s salary for its junior staff. This move is set to impact approximately 6,000 employees and represents a total expenditure of up to S$8 million, with payments anticipated by April 2025. UOB's Head of Group Human Resources, Dean Tong, emphasized that despite the moderation of inflation rates, the cost of living remains a pressing concern for many.

As for DBS Bank, it refrained from announcing any one-off bonuses, instead reiterating its commitment to a comprehensive employee value proposition and competitive compensation practices.

Despite forecasts indicating a decrease in core inflation to 2% in 2025—a figure notably higher than the pre-pandemic average of 1.1% from 2015 to 2019—living costs remain a significant concern for employees. OCBC's Head of Group Human Resources, Lee Hwee Boon, stated that the well-being of their workforce is paramount, and the bank hopes the bonuses will alleviate some financial pressure on junior employees.

In addition to the direct financial support, both banks are committed to providing resources for professional development. OCBC plans to offer upskilling and reskilling opportunities, equipping employees with the necessary tools to navigate future challenges and enhance their financial well-being.

UOB’s Mr. Tong underlined a dedication to constantly revising their wage structures to maintain fairness and competitiveness. He mentioned the bank’s holistic approach to employee support, which includes improved medical benefits, training programs, and housing loans.

This year marks the second consecutive period in which OCBC and UOB have stepped up to support their junior employees in coping with the high cost of living. Earlier in 2024, both banks, along with DBS, issued similar payments following a recommendation by the National Wages Council (NWC). Although the NWC did not issue a call for additional payments this year, it encouraged employers who have fared well financially to consider built-in wage increases and variable payments for their staff.

As economic uncertainties continue, the proactive measures taken by OCBC and UOB stand as a testament to their commitment to employee welfare during challenging times.