Civil servants to get 0.65-month year-end bonus next month

SINGAPORE — Civil servants here will be paid a 0.65-month year-end bonus next month, with low-wage officers getting at least S$1,100, the Public Service Division (PSD) announced today (Nov 25).

The year-end Annual Variable Component (AVC) bonus that the civil servants are getting is lower than last December’s AVC bonus of 0.8 month.

Together with the mid-year AVC of 0.5 month, Singapore’s 82,000 civil servants will get a total of 1.15-month AVC for the whole of this year — on top of their traditional 13-month bonus and performance bonus. 

According to the PSD today, around 1,300 civil servants — Division IV officers tasked with providing basic office administrative support — will benefit from the minimum AVC payment of S$1,100. A typical Division IV officer earns between approximately S$1,400 and S$1,800 per month.

For example, an officer earning a monthly salary of S$1,500 will get a year-end AVC of S$1,100, which is S$125 more than what he would get  at 0.65 month of his monthly salary.

“This signals the Government’s continued commitment to help low-wage workers,” it said. 

The lower year-end payment for the Civil Service comes as Singapore continues to feel the effects of a global economy that remains engulfed by uncertainties. 

As the PSD noted, Singapore’s economy grew by 1.9 per cent on a year-on-year basis in the third quarter of  2015, moderating slightly from the 2 per cent growth in the second quarter. 

The Ministry of Trade and Industry expects the economy to grow by close to 2 per cent for the whole of 2015. In 2014, Singapore’s economy grew by 2.9 per cent.

“Unemployment remained low while total employment growth has continued to slow amidst weaker economic conditions,” the PSD said. 

It added that the year-end AVC payment, including the minimum payment, was decided in consultation with the public sector unions.

The National Trades Union Congress (NTUC) expressed its support for the PSD move.

“Amidst the backdrop of a lacklustre global economy, and a downward adjustment of Singapore’s economic growth forecast to ‘close to 2 per cent’ from earlier forecast of 2 to 2.5 per cent, the total payout package shows the Government’s appreciation to the public service officers for their dedication and contribution,” the NTUC said following the PSD’s announcement.

“We are also pleased to note that the Public Service Division has paid close attention to the lower-wage officers by giving a higher amount than if the bonus is pegged to their monthly wages,” it added.

The attention paid to lower-wage officers was also welcomed by union leaders. Mr Yeo Chun Fing, general secretary of the Amalgamated Union of Public Employees, said: “We are also happy with the PSD’s support to our request in giving more to the lower-wage civil servants. Our members are satisfied with this payout package.”

Mr G Muthukumarasamy, general secretary of the  Amalgamated Union of Public Daily Rated Workers, said the minimum AVC bonus of S$1,100 “will come in handy for our lower-wage workers during this festive season, as well as cope with the higher cost of living”. He added: “I urge our members to spend the bonus wisely in view of the uncertain economy ahead.”