SINGAPORE: A man shared on social media that he and his colleagues in the operations and sales teams will face a 20% pay cut for the next two months, as their manager claims they “didn’t meet the targets.”
In a post on Reddit’s Ask Singapore forum, he called the pay cut “outrageous” and raised concerns about why the staff should be held responsible for the company’s financial difficulties.
“The scenario is that they claim the pay cut will only be for 2 months and after that..if and only if sales hits their targets, our full pay will be restored,” he wrote.
However, when he and his colleagues asked what would happen if targets were not met, the manager evaded the question entirely, leaving the team in a state of uncertainty. “The useless manager refused to answer,” he said.
This lack of transparency and communication led the man to speculate that the company may be on the verge of collapsing. He believes that management is trying to extract as much work as possible from employees to fulfil client commitments before eventually shutting down and laying off staff.
To make matters worse, the company has refused to allow work-from-home (WFH) arrangements during this period, which the man found unreasonable given the circumstances.
“I have around 7 years of experience in the industry I am in but sadly, this is the 4th time I am experiencing this kind of nonsense situation in a company in this industry,” he wrote.
In light of the situation, the man shared that he is now actively looking for another job, as he doesn’t want to be with the company “when the ship sinks.”
He ended his post by asking for advice from others who might have faced similar challenges, writing, “Did you have the mood to continue working? Were your colleagues united in this situation, or were you surrounded by passive compliant mules?”
“It’s quite obvious that they are trying to downsize”
In the comments section, many Singaporean Redditors were equally surprised and concerned by the 20% pay cut, with several stating that if they were in a similar situation, they would resign immediately and begin searching for a new job.
Others noted that this kind of scenario is unfortunately common in small and medium-sized enterprises (SMEs), where financial instability or poor management often leads to sudden pay cuts.
One Redditor explained, “They are using this to make employees resign on their own so that they do not need to pay for the termination. It’s quite obvious that they are trying to downsize.”
Another remarked, “20% is a lot. Honestly, I’d resign. The problem is if and when you look for a new job, they will tailor the package based off your last drawn salary. Getting a pay cut now can potentially affect your salary in future roles.”
A few users also suggested the man review his contract to check if there are any clauses or policies related to pay cuts that might protect him or provide more clarity on the situation.
One Redditor said, “Check your employment contract how payment changes or deductions should be treated. If there are any changes in the contract, 1) it should be communicated by your employer in writing, and 2) it should be with the employees’ consent, also in writing.
“There may be some exceptions such if it is a company-wide pay reduction. If in doubt, escalate to MOM.”
Under what circumstances can an employer make deductions from a worker’s salary?
According to the Ministry of Manpower, employers can only deduct a worker’s salary in specific situations, for example, if they are absent from work, cause damage or loss to company property (including work gear, tools, and vehicles), or if they accept accommodation provided by the employer. Deductions can also be made for CPF contributions and payments to approved cooperative societies.
Additionally, employers may deduct for services or amenities that have been authorized by the Commissioner for Labour and accepted by the employee, like childcare or recreational facilities, as long as they go beyond what the employer is normally required to provide. They can also deduct for advances, loans, overpaid salary, or unearned benefits.
Lastly, employers can deduct from a worker’s salary if the worker gives written consent, and the worker can withdraw that consent at any time.
Aside from these, employers cannot deduct salaries for things that don’t directly benefit the employees
Furthermore, employers are restricted from deducting more than 50% of a worker’s salary in any given pay period. However, in cases where employment is terminated, authorized deductions may exceed 50% of the final salary payment.
Featured image by Depositphotos (for illustration purposes only)