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Public Service to ‘exercise restraint’ for year-end bonus payment, which will be lowest in a decade

SINGAPORE — Due to prevailing economic uncertainties, the Public Service Division (PSD) said that it will “exercise restraint” for the year-end bonus payment, which will be the lowest in a decade.

All civil servants will get the 13th-month payment — called the Non-Pensionable Annual Allowance — equal to one month’s salary, to be paid in December together with the AVC and lump sum payments.

All civil servants will get the 13th-month payment — called the Non-Pensionable Annual Allowance — equal to one month’s salary, to be paid in December together with the AVC and lump sum payments.

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SINGAPORE — Due to prevailing economic uncertainties, the Public Service Division (PSD) said that it will “exercise restraint” for the year-end bonus payment, which will be the lowest in a decade.

Those in public service whose job positions are in the superscale grades will receive a one-off payment of S$400 in lieu of their year-end Annual Variable Component (AVC).

All other civil servants will receive a year-end AVC of 0.1 month and a one-off lump sum payment of between S$250 and S$1,500, with those in the lower pay grades to receive a higher amount.

All civil servants will also get the 13th-month payment — called the Non-Pensionable Annual Allowance — equal to one month’s salary, to be paid in December together with the AVC and lump sum payments.

The civil service gave its employees a mid-year AVC of 0.45 month’s pay in July, together with a lump-sum payment of S$200. Low-wage civil servants in Grades IV and V of the Operations Support Scheme received a higher lump sum of S$300 instead of the S$200.

Together with the 0.45-month AVC handed out in July this year, most civil servants will receive a full-year AVC of 0.55 months this year.

The year-end bonus is the lowest since 2009, when civil servants did not receive any AVC. Back in 2009, in the midst of the global financial crisis, civil servants were given a one-off payment of 0.25 months, which was then capped at S$750.

In 2018 and 2017, civil servants received a year-end bonus of one month’s salary, with low-wage officers getting a minimum of S$1,800.

In 2016, it was 0.5 month, with low-wage civil servants getting at least S$900.

The year-end bonus was 0.65 month in 2015 and 0.8 month in 2014, with low-wage officers receiving a minimum of S$1,100 and S$1,200 in the respective years.

In an internal note to public officers that was made available to the media, Trade and Industry Minister Chan Chun Sing said that the economic performance this year has been weak, and the economic outlook remains uncertain and challenging with downside risks.

“For this year, while we moderated the overall annual AVC for all civil servants, we will extend greater support for our officers in the junior grades. I am glad that our public sector unions supported this move,” he added.

In its media statement, PSD said that the Ministry of Trade and Industry had forecast that the economy will grow by 0.5 per cent to 1 per cent in 2019, with growth for the fourth quarter of the year expected to remain modest.

“While the labour market saw a growth in total employment, unemployment inched up and retrenchments rose over the quarter,” PSD said.

Ms Cham Hui Fong, assistant secretary-general of the National Trades Union Congress (NTUC), said that as the economic outlook remains uncertain, the public sector unions comprising the Amalgamated Union of Public Daily Rated Workers and the Amalgamated Union of Public Employees had agreed on a “calibrated approach… to reward lower grade officers with a higher dollar quantum”.

“Moving forward, NTUC and the public sector unions will work closely with the public sector to actualise training under the Company Training Committees to not only enhance the employability of workers but to also ensure that they stay updated on the transformation taking place in the public sector,” she said.

Fellow unionist Sanjeev Tiwari, general secretary of the Amalgamated Union of Public Employees, said that the year-end payment is reflective of the lower economic growth expected for this year.

“We have taken a cautious approach by having tiered payments for all, providing more to our lower-income officers and less for our officers with more senior grades,” Mr Sanjeev said.

Related topics

Public Service Division bonus pay salary civil servants economy Chan Chun Sing

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