Civil Servants In Singapore Will Get 0.3-Month Mid-Year Bonus
Civil servants in Singapore can look forward to an upcoming 0.3-month mid-year bonus. On top of that, junior staff will also be getting up to S$400 in a separate one-time payment.
The Public Service Division (PSD) shared this piece of news in a press release on Monday (19 June).
It added that this bonus takes into consideration the weakened economy around the world as well as increased external risks.
Bonus for civil servants slightly lower than last year due to economic situation
After consulting with public sector unions, the Government has come to a decision to award all civil servants a 0.3-month mid-year Annual Variable Component (AVC).
This bonus is a slight decrease from the 0.35-month AVC civil servants received at the same time last year.
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For civil servants in certain grades, the Government will award a one-time payment on top of the standard bonus.
Those in the MX13(I) and MX14 paygrades will receive S$200 more, while those in the MX15 and MX16 paygrades, as well as OSS Grades III and IV will receive S$400 on top of the AVC.
The amount for the one-time payment remains the same as last year.
Slower market growth compared to last quarter informed this round of payouts
The AVC amount this year takes into consideration the current global economic outlook, shared the PSD.
It explained that Singapore’s economy expanded by 0.4% in the first quarter of 2023. This is a slower expansion in comparison to the 2.1% of the previous quarter.
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Similarly, the Ministry of Trade and Industry (MTI) has forecasted the GDP growth to be 0.5% to 2.5% this year. This growth will likely come towards the middle of the forecast period.
This means the outlook for Singapore’s external demand has weakened. In addition, this outlook takes into account higher adverse risks such as tighter global financial conditions and the risk of further escalations in geopolitical tensions.
The division noted, in addition, that while Singapore’s labour market continued to expand in the first quarter this year, it was at a slower pace than last quarter. It highlighted that total employment expanded for the sixth quarter in a row, and unemployment rates in the country remains low.
Ahead of the year-end bonus, the Government will continue to closely monitor the economic situation, said the PSD. Guidelines by the National Wages Council, which will come out later this year, will also advise the next AVC payout.
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Featured image by MS News.
