I recently heard the term what is annual wage supplement and need clarity.
Is it considered a bonus, allowance, or incentive?
How is it taxed and reported on payroll?
An annual wage supplement is an additional payment given to employees once a year, often as a bonus or extra salary, to reward performance, cover cost-of-living increases, or meet contractual or legal requirements.
The Annual Wage Supplement (AWS), sometimes referred to as the "13th month bonus," is a single annual payment made to employees on top of their regular total annual wage. This payment typically amounts to one month's salary.
Annual Wage Supplement (AWS) is an extra payment given by employers, usually once a year, in addition to the regular salary. It rewards employees for performance or loyalty and is often equivalent to one month’s salary.
