The year-end bonus for civil servants was announced on 27 November 2017 by the Public Service Division (PSD).
Over and above the 13-month payment, some 84,000 civil servants will receive a year-end annual variable component (AVC) of one month.
Meanwhile, low-income earners will be getting a minimum AVC of $1,800 regardless of what they earn. This means that an officer earning a monthly salary of $1,500 will get a year-end AVC of $1,800, which is $300 more than his or her pay.
This move will benefit some 1,490 employees, said PSD, signalling the Government’s commitment to help low-wage workers.
In 2016, civil servants received a year-end AVC of 0.50 month while low-income earners got a minimum AVC of $900.
The Ministry of Trade and Industry has also forecast that the economy will grow by 3 to 3.5 per cent for the whole of 2017. The government's earlier forecast of economic growth for the whole of 2017 was between 2 per cent to 3 per cent.
Rationale
PSD explained that this year’s bonus announcements are made against a backdrop of strong economic growth.
Between January and September this year, the economy grew at a faster pace of 3.5 per cent compared to 1.7 per cent over the same period a year ago.
Labour Movement’s Response
The Labour Movement is heartened that workers will be able to reap the benefits of the positive economic outlook for Singapore, said NTUC Assistant Secretary-General (ASG) Cham Hui Fong.
“We are particularly pleased that that lower-income earners will be duly rewarded for their hard work and receive a minimum year-end AVC of $1,800. We will continue to be by the side of workers as they upskill and be future ready for new jobs and skills opportunities alongside economic transformation,” said ASG Cham.
Unions representing civil servants and public daily-rated workers also lauded the bonus payments. Leaders from both the Amalgamated Union of Public Employees (AUPE) and the Amalgamated Union of Public Daily Rated Workers (AUPDRW) also pledged to continue doing their part to help workers deepen their competencies to provide quality public service.
“I am extremely encouraged to see that lower wage civil servants will receive a minimum year-end AVC of $1,800. This is a particularly rewarding sum that will definitely ease their year-end necessities such as back-to-school spending, plus a little bit more for the coming festivities,” said the General Secretary of AUPDRW, G Muthukumarasamy.
While the General Secretary of AUPE, Yeo Chun Fing added, “AUPE is appreciative of the Government’s efforts to reward our civil servants, especially as they have always put in their utmost efforts behind government programmes and initiatives to serve the people in Singapore”.
