SINGAPORE: The Overseas Chinese Banking Corporation (OCBC), one of the biggest financial institutions in Singapore and Malaysia, announced on Monday (Dec 23) that it would be giving its junior employees across the globe a one-off payment totalling an estimated S$7.5 million to help them cope with the cost of living.
In Singapore alone, 4000 junior employees will receive S$1,000 each, following a similar payment last February.
Nearly 11,000 OCBC employees, including those from Bank of Singapore and OCBC Securities, will benefit from the payment, or around 40 per cent of OCBC Group’s overall headcount across 17 markets. The payment will be given to them between February and April 2025.
The recipients in Singapore include unionized employees and new hires and comprise nearly 40 per cent of the total number of employees based in the city-state.
OCBC noted in its announcement that core inflation is expected to decline next year.
The financial institution added that the forecasted rate of 2 per cent nevertheless remains higher than the 1.1 per cent core inflation rate from 2015 to 2019, before the COVID-19 pandemic. Earlier increases in inflation have also kept price levels high.
The bank also said that the payment will take into consideration the respective local market conditions for OCBC employees outside Singapore. One of OCBC’s Service Specialists was quoted in the announcement as saying:
“With the high cost of living in Singapore, it feels like every dollar counts more than ever. The one-off payment last year provided me with some much-needed relief, allowing me to cover some essential expenses and even put a little aside for rainy days – you never know what will happen tomorrow.”
The 41-year-old mother of five added that OCBC’s first cost of living payment in February made her feel like valued member of the bank’s team.
The earlier payout cost OCBC S$9 million and benefited more than 40 per cent of the financial institution’s headcount, or almost 14,000 junior employees including those employed at the Bank of Singapore, OCBC Securities, and Great Eastern Holdings.
“While inflation is forecasted to moderate in 2025, we acknowledge that cost-of-living concerns persist. The well-being of our people remains a top priority, so we hope that this one-off payment will ease concerns over the high living costs faced by our junior colleagues,” said Lee Hwee Boon, the Head of Group Human Resources at OCBC.
2023 was a very good year for OCBC, which saw a significant surge in net interest and non-interest income even by the third quarter. The bank’s net profit soared by 21 per cent to a new high of S$1.81 billion, propelled by robust growth in both core revenue streams. /TISG
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