In an impactful move to support its workforce, the Overseas Chinese Banking Corporation (OCBC), one of Southeast Asia's leading financial institutions, announced a generous one-off payment totaling approximately S$7.5 million to assist junior employees in navigating escalating living expenses. This financial relief effort comes as a response to growing concerns over the cost of living in Singapore and beyond.

Effective from December 23, the initiative will benefit around 11,000 junior employees globally, with a significant focus on Singapore, where 4,000 individuals will receive S$1,000 each. This follows a similar initiative from February of the previous year, demonstrating OCBC's ongoing commitment to the welfare of its staff.

The one-off payout is strategically timed, with disbursement scheduled between February and April 2025. It represents about 40% of OCBC’s overall workforce, which operates across 17 different markets, including the Bank of Singapore and OCBC Securities. Notably, this includes unionized staff and new hires within Singapore, emphasizing the bank's inclusive approach to employee support.

ECONOMIC CONTEXT:

While OCBC indicated that core inflation is projected to decline next year, they acknowledged that the anticipated rate of 2% still surpasses the 1.1% average experienced between 2015 and 2019, preceding the disruptions caused by the COVID-19 pandemic. Previous inflationary trends have kept living costs elevated, making this assistance particularly timely.

An OCBC employee, a 41-year-old mother of five, shared her gratitude, stating, “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 essential expenses and even save a bit for the future.” Her testament reflects the bank’s positive impact on employees' lives.

The earlier payment in February amounted to S$9 million, positively affecting over 40% of the overall workforce, including approximately 14,000 junior employees from OCBC’s various subsidiaries.

Lee Hwee Boon, Head of Group Human Resources at OCBC, expressed that while inflation is expected to level out 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."

This progressive step comes after a remarkable year for OCBC, reporting a staggering 21% increase in net profit, reaching S$1.81 billion by the third quarter, driven by strong performance across both net interest and non-interest income streams.

As the cost of living continues to rise globally, OCBC's actions not only underscore its commitment to employee welfare but also set an example for other organizations to consider the well-being of their staff in challenging economic times.