SINGAPORE: The government made an announcement on Monday (Jun 16) concerning the mid-year bonus civil servants will be receiving. Following close consultation with public sector unions, civil servants will receive a 0.4-month mid-year bonus, and some junior-grade officers will also receive an additional one-time payment of up to S$400.
“The government has decided to pay all civil servants a mid-year Annual Variable Component (AVC) of 0.4 months. Civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of S$250, while those in grades equivalent to MX15 and MX16, and those in the Operations Support Scheme (OSS) will receive a higher one-time payment of S$400,” a statement from the government reads.
It added that the mid-year bonus also took into consideration the economic performance of Singapore for the first quarter of the year, as well as the subdued economic outlook for this year. With weaker Gross Domestic Product (GDP) growth and the downside economic risks, Singapore’s economic performance will be jointly monitored by the Government and public sector unions, the statement said, adding that year-end bonuses will be calibrated accordingly.
In 2024, the Government issued a mid-year AVC of 0.45 months to all civil servants.
Economic and labour market conditions
Year-on-year, the city-state’s economy grew by 3.9% in the first quarter of 2025. According to the Ministry of Trade and Industry, the GDP growth forecast is expected to be 0.0% to 2.0% this year. This takes into account the “significant uncertainty, with the risks tilted to the downside” of the global economic environment.
As for the labour market, the Ministry of Manpower’s (MOM) advance estimates show that labour demand may be moderating. While there was expansion in the labour market in the first quarter of the year, the pace of employment growth has slowed down in comparison to previous quarters. Additionally, unemployment rates have gone up slightly since the end of 2024.
“MOM expects the labour market to soften going forward, given the greater uncertainties weighing on business sentiments,” the statement added.
“The mid-year AVC payment of 0.4 month for the civil service is thus moderated and balanced as we are navigating a complex environment with lots of uncertainties. The additional one-time lump sum payments give a boost to civil servants who may need more assistance during this period. We thank our civil servants for their hard work over the past months in serving Singaporeans, including our workforce,” said NTUC Deputy Secretary-General Cham Hui Fong. /TISG
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