Average monthly earnings (AME) is calculated based on the past 12 months’ earnings before the date of accident.
It include wages, allowances, overtime payments, bonuses or annual wage supplement.
It doesn’t include travelling allowances, employer’s CPF contributions or pensions or monies paid to cover any special expenses incurred by the employee by nature of his employment.
In general, you don’t need to include the period of no pay leave.
You can use the AME calculator to get an indicative and non-determinant estimate.
Employers can also get help from your insurer on how much is the AME, and the amount to be reimbursed to your injured employee.
In there’re disputes, employers, insurers and injured workers should work together to reach a mutual agreement on the final computation.