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What are conditional wages?

Conditional wages are wages paid to employee with condition(s) attached. Depending on the terms of employment or mutual agreement, such wages are repayable to employer when the employee fails to fulfil the condition(s).

Below are some examples of conditional wages:

Conditional Wages


Reason(s) for Failure to Fulfil the Condition

Sign-on/Retention bonus

Fulfilment of minimum service period

(a) Resignation

(b) Termination

Conditional performance bonus

Paid annual leave

Resignation/termination resulting in a reduction of annual leave entitlement which has to be converted to no pay leave


Meeting of performance/sales target(s)

Did not meet the agreed target(s)

Conditional salary increments

Advance salary paid on sales of goods/services

Return of goods/services

Goods or services were returned, e.g. due to client’s cancellation of insurance policy during free-look period etc.

Paid study leave

Completion of course

Failure to complete course

Conditional salary increments