The Government of Singapore has announced that all civil servants in Singapore will receive a mid-year bonus, or annual variable component (AVC) of 0.3 months. Junior-grade officers within the civil service will be eligible for a one-time payment of up to S$400.
Additionally, civil servants in grades MX13(I) and MX14 will be paid S$200 over and above this. Civil servants in grades MX15 and MX16 or equivalent as well as employees in the Operations Support Scheme (OSS) Grades III and IV will be paid S$400.
Last year, the mid-year bonus was of 0.35 months, a bit higher than this year’s. However, this year’s bonus has been decided in consultation with the unions of the public sector. It is lower because it has taken into account the global economic slowdown.
It is reported that there has been an expansion of 0.4 per cent in the Singapore economy in Q1 of 2023. In the last quarter it was 2.1 per cent. However, the GDP growth forecast for 2.23 still remains somewhere in the range of 0.5 to 2.5 per cent.
It is pertinent to mention here that the demand outlook for Singapore for the rest of 2023 is not strong and there are uncertainties pertaining to various geopolitical situations and the global economic conditions.
The AVC payouts to be made at the end of 2023 will be decided based on the economic conditions at the time, and in alignment with the National Wages Council’s guidelines expected to be issued later this year.