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Processing Annual Wage Supplement (AWS)
Processing Annual Wage Supplement (AWS)

Steps to process AWS and to calculate AWS proration

Nicholas avatar
Written by Nicholas
Updated over 3 years ago

If your employees are entitled to Annual Wage Supplement (AWS) or 13th month bonus and assuming you want to process it as a separate payment from a specific month's payroll, you can follow these steps:

1. Process a separate payment for AWS and Bonus under Payroll > Payroll Settings > Process Payment - Step 1 (similar process payroll steps). It should look like this:

2. Under Process Payment - Step 2 > Ad Hoc Payment/Deduction, add Annual Wage Supplement and Bonus pay items. Thereafter, enter the Amount field and include a description in the Remarks field for easy reference in payslip.ย 

Do remember to rename this payment for future reference.

Once you have processed this payment, the amount will be displayed together with Basic Salary in Payslips and Month Total page. ๐Ÿ˜€

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โ€‹How do you prorate AWS in Talenox?

You will need to manually calculate AWS on your end and enter the amount for now. There isn't a fixed formula to calculate the proration, but you can use the following:

  • Basic Salary / 12 months x No. of completed months

  • Basic Salary / (52 weeks x actual working days per week) x No. of completed working days

As AWS is not required by law, your employee's entitlement to AWS and how it is calculated (including proration), would depend on the terms of the contract with your company.

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