SINGAPORE — The Public Service Division (PSD) revealed on Monday (19 June) its decision to grant mid-year bonuses to civil servants in Singapore.
The government has allocated a mid-year Annual Variable Component (AVC) of 0.3 months for all civil servants. Additionally, junior grade officers will receive an extra one-time payment of up to S$400 (US$298).
The specific amount of the one-time payment depends on the civil servants’ respective job grades.
Civil servants in grades equivalent to MX13(I) and MX14 will receive an additional S$200, while those in grades equivalent to MX15 and MX16, along with those in the Operations Support Scheme (OSS) Grades III and IV, will receive a higher one-time payment of S$400.
PSD said the move comes after close consultations with public sector unions.
“This mid-year payment takes into consideration the weakened economic outlook, and significant downside risks that remain in the global economy.”
According to the PSD’s statement on Monday, Singapore’s economy experienced a modest growth rate of 0.4 percent year-on-year in the first quarter of 2023. This expansion represents a slowdown from the 2.1 percent growth observed in the previous quarter.
The Ministry of Trade and Industry has maintained its GDP growth forecast for 2023, estimating a range of “0.5 percent to 2.5 percent.” The government expects growth to settle around the mid-point of this forecast range.
However, there are concerns about the weakened external demand outlook and increased downside risks, including the potential impact of tighter global financial conditions and geopolitical tensions.
“The labour market continued to expand in the first quarter of 2023, albeit at a more moderated pace compared to the previous quarter.”
Total employment expanded for the sixth consecutive quarter, and unemployment rates remained low.
Given this backdrop, the government, in close consultation with public sector unions, has decided to provide all civil servants with a mid-year AVC of 0.3 months.
“In deciding the year-end AVC payments, the Government will continue to monitor the economic situation closely, and take into consideration the guidelines by the National Wages Council which will be released later in the year,” stated the PSD.