Annual Wage Supplement
AWS, often called the 13th-month payment, is an annual payment in addition to total annual wages. It is not compulsory unless required by the employment contract or collective agreement. Employers are encouraged to use it to recognise employee contributions; exceptionally poor business results may lead to negotiation of a lower amount. An employer that did not pay AWS before 26 August 1988 cannot pay more than one month’s salary as AWS.
Bonus and variable payment
A bonus is a one-off reward for employee contributions, usually offered at year-end. Variable payments can incentivise productivity or recognise contributions. Neither is compulsory unless the contract or collective agreement makes it payable. Check the agreed terms rather than assuming every year-end reward has the same entitlement or calculation.