CPFB | What are conditional wages?

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	Condition	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
Commission	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

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