The Calculation
Fixed monthly salary equals basic monthly salary plus fixed monthly allowances. Basic salary does not change with employee or company performance, or because the employee takes medical or personal leave. Fixed allowances remain the same each month, such as a fixed food or housing allowance.
Payments Excluded
Do not count variable allowances; overtime, bonuses, commissions or annual wage supplements; board fees, stock options or dividends; benefits in kind; reimbursements, including employment-related expenses; productivity incentives; employer pension/provident-fund contributions, including payments on the employee’s behalf; or gratuities on discharge, retrenchment or retirement.
A Worked Pay-Package Example
For illustration, suppose an offer provides S$5,500 basic monthly salary, a fixed S$600 monthly housing allowance, reimbursement of S$200 in actual travel expenses, and a possible S$6,000 annual bonus. The fixed monthly salary is S$6,100. The reimbursement and bonus do not increase that figure, and dividing the annual bonus by 12 does not turn it into fixed monthly pay. These are hypothetical amounts, not a suggested salary or an assessment of eligibility.
A cash housing allowance that stays the same each month differs from accommodation supplied as a benefit in kind. The former can form part of fixed monthly allowances; the latter is excluded. A description such as “housing support” is therefore not enough to identify which calculation applies. Check how the proposed benefit is actually provided.
Prepare a Clear Salary Breakdown
As a practical review, list each pay component with its frequency, whether it is fixed or variable, and whether it reimburses an expense. Compare this worksheet with the employment offer and the amount intended for the work-pass application. Resolve unclear wording with the employer before relying on the total. This worksheet is a suggested preparation aid, not a prescribed MOM form or an additional filing requirement.
Official Source
Written independently from official MOM source material.