Civil servants to receive 0.3-month mid-year bonus; Labour Movement welcomes announcement

The Labour Movement welcomed on 19 June 2023 the mid-year annual variable component (AVC) payout for civil servants amidst high inflationary pressures and ongoing geopolitical tensions.

It was responding to the Public Service Division’s announcement on the same day to pay all civil servants a mid-year AVC of 0.3 months in consultation with public sector unions.

Junior grade officers will receive an additional one-off lump sum payment. Officers in grades equivalent to MX13 (I) and MX14 will receive a $200 payment. Officers in grades equivalent to MX15 and MX16 and Operations Support Officers in grades III and IV will get a higher $400 payout.

NTUC Deputy Secretary-General Cham Hui Fong said: “NTUC has negotiated and agreed on the terms of the mid-year AVC payout and the additional one-off lump sum payments especially for lower grade officers with the Public Service Division. 

“The 0.3 months of mid-year AVC payout is a cautious and fair amount to recognise the contributions of all our civil servants’ continued efforts. NTUC continues to emphasise the importance of training where employees should reskill and upskill themselves. This is so they can have better work prospects and remain employable.”

Amalgamated Union of Public Employees (AUPE) General Secretary Sanjeev Kumar Tiwari also acknowledged the Public Service Division for its continued recognition of civil servants’ contributions, adding that the lump sum payment will help junior grade officers cope with rising costs.

He said: “The Amalgamated Union of Public Employees has agreed with the Government to take a cautious view, amidst the slowdown in the economy with a slightly conservative mid-year annual variable component payout for our civil servants.

“We will continue to monitor the economic situation and hope for better outcomes at the end of the year. We will continue working with the Government to provide greater recognition for our officers.”

Economic outlook

The Public Service Division said it took the weakened economic outlook and significant downside risks that remain in the global economy into consideration when deciding the mid-year bonus.

Singapore’s economy expanded by 0.4 per cent on a year-on-year basis in the first quarter of 2023, moderating from the 2.1 per cent expansion in the previous quarter.

The Ministry of Trade and Industry has maintained a GDP growth forecast of 0.5 per cent to 2.5 per cent for 2023, with growth likely to hit the mid-point of the range.

The risks for this year include the impact of tighter global financial conditions and potential escalations in geopolitical tensions.

Meanwhile, the labour market continued to expand in the first quarter of 2023 at a more moderated pace compared to the previous quarter.

Total employment expanded for the sixth consecutive quarter while unemployment rates remained low.

The Government said it will continue to monitor the economic situation and consider the National Wages Council guidelines for the year-end AVC payments.