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Evaluating an offer can be challenging without an internal guide.
Several companies offer different flashy terms and conditions that make it challenging to compare across other offers.
This series provides details on most offer components present in the Singapore job market to aid your decision-making.
First and foremost, we will start with the most prominent component of an offer letter: compensation.
We compiled a list of points to evaluate your compensation with:
1. Base Pay
This is the salary that you will receive every month (pre-CPF contribution).
As it is not performance-based, you can consider this the monthly amount you will receive with certainty while you are with the firm.
2. Additional Allowance
Some companies will provide an additional monthly allowance to cover transport, meal, or other expenses.
Tip: Note that the allowance component typically does not qualify for CPF and Bonus.
3. Annual Wage Supplement
Verify if the 13th month pay is applicable.
Tip: If the 13th month is applicable, consider that the payment will only be issued in December or the end of the company's fiscal year.
4. Bonus
Consider these factors:
Number of months of bonus
Allocation in terms of % split between Individual performance and Group Company performance.
Tip: If Individual: Group Company performance is split in a 20: 80 ratio, it means that your bonus amount is largely dependent on how your company performs as a whole across the financial year.
Verify if Employee Stock options are available. These will grow in value if the company is on a positive trajectory
Commission (only applicable to Sales and Business Development)
With these points, it is important to note that compensation is one component of many to consider. Check out our next article for the others factors to look out for in your offer!