Singapore's civil servants to receive 0.3-month mid-year bonus: PSD

This follows careful consideration regarding Singapore's economic outlook and a progressive approach towards mid-year payments.

Singapore's Public Service Division (PSD) on 19 June 2023 (Monday) announced the handout of mid-year bonuses to all civil servants following close consultation with public sector unions.

The Government has decided to pay all civil servants a mid-year Annual Variable Component of 0.3 months. It further details that civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of S$200 while those in grades equivalent to MX15 and MX16, and those in the Operations Support Scheme (OSS) Grades III and IV will receive a higher one-time payment of S$400.

This mid-year payment takes into consideration the weakened economic outlook, and significant downside risks that remain in the global economy. PSD explains that the Singapore economy has expanded by 0.4% on a yearly basis in the first quarter of 2023, moderating from the 2.1% expansion in the previous quarter. The Ministry of Trade and Industry has maintained a GDP growth forecast of “0.5% to 2.5%” for 2023, with growth likely to come in at around the mid-point of this forecast range.

The assessment is that Singapore’s external demand outlook for the rest of the year has weakened and downside risks have risen. The downside risks include the impact of tighter global financial conditions and the risk of further escalations in geopolitical tensions. 

With regards to year-end AVC payments, the Government will continue to monitor the economic situation closely, and consider the guidelines by the National Wages Council which will be released later in the year.

Meanwhile, NTUC Deputy Secretary-General Cham Hui Fong has responded to the announcement. "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."

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