Should one calculate annual average monthly salary or monthly gross salary to have a more accurate monthly salary an employee is receiving per annum? Is annual average monthly salary more accurate?

E.g. An employee can be paid $5k a month in gross salary but receive an annual average monthly salary of $7k after adding allowances and bonuses received over the course of a year.

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Chin Guo Qiang (ITIL4 / CSPO / CSM)

24 Jan 2024

Assistant Vice President, IT Operations at Bank of China Limited

It can be seen as 4 components, of which the first one is the most important (for monthly average pay calculations) :

Fair assumptions should be putting #2 to #4 as very optional (can be voided or not given in bad financial standings of a company).

Base pay (what you are taking home on a monthly basis, essential)
AWS (13th month bonus in other words) - Optional for companies
Performance Bonus - Optional for companies (very subjective)
Any other Bonuses - Eg. Corporate bonuses etc. (very very optional)

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CH

23 Jan 2024

Anything which is taxable i consider as "salary". which includes allowances, incentives, insurances.

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Ace

23 Jan 2024

Depends on what you use the figure for? Probably the amt reported to IRAS+CPF + on past payslip is t...

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