The Flexible Wage System is a wage system that gives employers more flexibility by building in a variable component into wages. After the Asian Financial Crisis, in 1999, the monthly variable component (MVC), on top of an AVC, was introduced.
In 1986, following the 1985 recession, the Flexible Wage System was introduced in the form of an annual variable component (AVC). Read Also: Guide To Understanding Singapore’s National Wages Council – And How They Affect Your Salary What Is Flexible Wage System?
Opting for a flexible wage system, could prove to be more beneficial than cutting base wages. It is important to know what the flexible wage system is, the wage components and how they affect you as an employee.Īs Singapore navigates out of the Covid-19 pandemic, the variable component of wages could be a method companies have decided to keep to as a buffer for future crisis.
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