SJM Holdings re-announces living subsidy

SJM Holdings re-announces living subsidy

SJM Holdings re-announces living subsidySJM Holdings Ltd has joined the bandwagon of Macau casino concessionaries announcing bonuses. GGRAsia reports the operator will give out an annual bonus in 2019 that they are calling a “living subsidy.” Depending on the employee’s role, they will receive between one-and-a-half to two months’ pay.

Although other operators have declared their bonus schemes first, SJM claims it paid their employees earliest, paying out half the subsidy on January 4.

Based on reports of the plan, the subsidy does not appear to be new at all. In August 2014, they announced the same plan would run until 2020. What has changed with this announcement is a new “2018 or 2020 subsidy-plus plan,” which allows employees to receive increased awards based on choices they are provided with.

The next installment of the subsidy is due to be paid in July.

There has been a lot of intense focus on these Macau bonus plans. In December, Macau Gaming Staff Rights Association head Cloee Chao pressured operators to increase salaries so that employees don’t feel pressured by inflation, arguing that revenue growth should more than afford the raises. As a result, each casino concessionaire has rushed to announce their bonus scheme to keep employees sated.

Melco was the first out of the gate, announcing a one month bonus sometime before Chinese New Year. MGM and Wynn followed that up with the announcement of a “winter bonus.” Finally, the Galaxy Entertainment group offered a similar bonus, but without disclosing amounts or timeframes. No word yet from the Las Vegas Sands, the final operator in Macau, on what their bonus scheme might look like.

A two month bonus is significant, and can go a long way towards helping pay the bills. However, these bonuses have all come to be somewhat expected by employees, and a “living subsidy” scheme that has existed since 2014 won’t exactly be new or exciting to concessionaire employees. If operations stay steady or continue to improve, employees will be looking for more.