OCBC is giving 4,600 junior employees in Singapore S$1,000 each to cope with cost of living concerns.

The payout, announced by the bank on Feb. 20, is part of a one-off financial support measure for 14,000 junior employees globally that comes up to S$9 million.

The global staff who will get the money represents more than 40 per cent of the bank's overall headcount in its 19 markets.

The Singapore staff who will receive the payout from February to March 2024 are working in OCBC and its subsidiaries including Bank of Singapore, OCBC Securities and Great Eastern Holdings.

In Singapore, the junior employees include new entrants to the workforce and unionised employees.

The 4,600 recipients in Singapore make up about 40 per cent of the total number of employees based here.

OCBC said in its statement that core inflation, which excludes accommodation and private transports costs, in Singapore is expected to decrease more gradually only towards the last quarter of 2024.

Singapore’s National Wages Council previously recommended in October 2023 for companies to help their employees with the country’s rising cost of living, beyond support from the government.

Providing a one-off assistance payment, with heavier weightage for lower to middle income employees, was one of the recommendations that was accepted by the Singapore government.

For employees outside Singapore, the one-off support takes into consideration the respective local market conditions.

OCBC’s head of group human resources, Lee Hwee Boon said: “The amount, for each of the 14,000 who will benefit, may not be large. However, we hope that this can help colleagues defray concerns on the rising cost of living."

OCBC added that it offers a range of resources such as articles, tools, virtual talks and regular workshops conducted by the bank’s in-house wealth advisor to assist employees in navigating their finances.

The bank also said it regularly reviews its employees’ built-in wage increases and variable payments to ensure that they commensurate with the bank’s performance and employees’ contribution.

Previously, it was reported that DBS junior employees in Singapore will receive a one-time bonus of S$1,000 each to cope with higher costs of living, while for employees outside of Singapore, the amount will be indexed to the local market’s purchasing power parity.

The amount set aside for this bonus came up to S$15 million for 2023.

Top photo via Google Maps