82,000 civil servants to get S$500 SG50 bonus

SINGAPORE — About 82,000 civil servants will receive a one-off S$500 bonus as Singapore celebrates its 50th birthday this year, along with their mid-year bonus of half a month’s pay, said the Public Service Division (PSD) today (June 17). The special payout is “in recognition of (civil servants’) contribution towards nation building” and will be handed out on July 1, it added in a press release.

Lower-wage Division IV officers, numbering about 2,500, will also receive a S$30 increment in their monthly salary, over and above their annual raise, said the PSD, adding that this signals the Government’s “continued commitment to help raise the salaries of low-wage civil servants”.

It noted that the S$30 extra increment is less than the National Wage Council’s recommendation this year of a S$60 raise for those drawing monthly salaries below S$1,100 because Division IV officers already earn more than this benchmark. A typical Division IV officer, who is tasked with providing basic office administrative support, currently earns between S$1,416 and S$1,813 per month.

Last year, Division III and IV officers got a pay raise of S$30 and S$70, respectively, in addition to their annual increments.

The mid-year bonus, or annual variable component, declared by the PSD this year is on par with what it gave out last year. Sketching out the labour and economic backdrop, the PSD said this year’s global economy is expected to come in marginally better than last year, but the pace of growth is likely to be uneven across economies.

“Given the expected improvement in global economic conditions in 2015, externally-oriented sectors are likely to see improved growth prospects. However, sector-specific factors could weigh on the growth of some sectors,” it said. “On the labour front, unemployment remained low as the labour market remained tight.”

The PSD added that Gross Domestic Product growth is expected to fall between 2 and 4 per cent, barring “downside risks”.

The quanta of the mid-year bonus and built-in wage increases were welcomed by the labour movement and its seven affiliated civil service unions.

The National Trades Union Congress (NTUC) said it is “heartened” that its call for a special SG50 bonus was accepted. “The focus placed on the Division IV employees with an additional built-in wage increase also shows an alignment in commitment to help our lower wage officers,” said the NTUC.

It added that the payouts’ quanta were decided on after several rounds of negotiations between representatives from the public sector unions and the PSD, and took into account Singapore’s economic performance and the National Wages Guidelines for 2015/16.

Mr G Muthukumarasamy, general secretary of the Amalgamated Union of Public Daily Rated Workers, said the bonus and wage adjustments will help lower-wage workers and their families cope with the rising cost of living.

“The union is happy that our daily rated workers are being appreciated for their contribution to Singapore with the special SG50 bonus. The bonus and built-in wages will help our lower-wage workers and their families alleviate their daily expenses,” he said.

General secretary of the Amalgamated Union of Public Employees Yeo Chun Fing described the mid-year bonus as a fair payment that recognises public servants’ “good work and dedication”.