Understanding Festive Advances

Companies in Singapore and Malaysia commonly make salary payments in advance to employees in recognition of specific festive holidays. This payment ensures that employees have sufficient money to pay for the larger-than-usual expenses often incurred during certain festival periods. This money is not a bonus or additional salary; it is a form of interest-free loan advanced by the employer that is recouped by deductions made in subsequent payrolls.

The recognized festive holidays are:

• Lunar New Year (Chinese New Year).

• Hari Raya.

• Deepavali.

• Christmas.

By default, all eligible employees receive a festive advance. If some employees choose not to accept a festive advance, you can set that choice for them. Similarly, you can grant a festive advance that is outside the employee's religious or ethnic group.

Festive advance functionality is fully integrated with the PeopleSoft Payroll process. You can set up some base information, such as calculation rules and a pay program, for use later in the process. You can then associate employees with the base information to have the normal payroll processes calculate and track the amounts.

A preliminary calculation of festive advance payment amounts is performed for all employees who are eligible for the festive advance and you can review, modify, or delete the information if necessary.