Does anyone want to share how to implement Inflation bonus as recommended by the Wage Council?
Hi Chris, Firstly, I have to stipulated that I am not for the inflation-bonus and do not intend to implement this. Following implementation of the inflation-bonus in Singapore, Brady Corporation Asia may have to do the same for the other SEA countries. There are various ways to define the lump-sum payment. One is to take the dollar quantum specified by the Singapore government and apply it to the lower-paid employees (especially those with monthly base salary below S$1,500 or S$1,200). The second way is to take the average annual salary of the above-mentioned category of employees and apply a certain percentage, say, the inflation differential between 2008 and 2007 to determine the lump-sum payment for said category of employees. In either case, you have to determine the cut-off and note those at the margin and, if necessary, scale down the lump-sum payment as necessary. I wish you all the best in any implementation of the inflation-bonus.
