SINGAPORE (CNA) – Eligible employees at Singapore Airlines (SIA) could receive around eight months’ bonus, following the group’s record earnings, a spokesperson told CNA on Thursday.
This bumper payment comprises a record-breaking 6.65 months’ profit sharing bonus and an ex-gratia bonus of 1.5 months.
“The bonus for SIA employees is based on a long-standing annual profit-sharing bonus formula that has been agreed with our staff unions,” the company’s spokesperson said.
SIA Group on Tuesday reported a record annual profit of SGD2.16 billion (USD1.63 billion) for FY 2022/23, reversing three straight years of losses. The earnings also saw the company rebounding from a SGD962 million net loss the previous year.
Strong demand for air travel drove revenue, operating profit and passenger load factor, said SIA.
SIA will award 0.5 months of ex-gratia bonus for each of the last three financial years, or a maximum total of 1.5 months, to eligible employees.
“Senior management will not receive this additional ex-gratia bonus,” the spokesperson said.
An ex-gratia payment refers to payment that is given as a favour rather than due to legal requirements.
This payout is meant to recognise the “dedication, hard work and sacrifices, including pay cuts during the pandemic” of SIA’s employees, as well as the success of the company’s three-year transformation programme that has enhanced its competitiveness and strengthened its foundations for the future.
The group now has around 24,000 employees on its payroll.