Civil servants in Singapore are set to receive a year-end Annual Variable Component (AVC) of one month this year. According to an official announcement released by the Public Service Division (PSD) on Friday (Nov 23), lower-wage civil servants will get minimum bonus of $1,800 as part of the government’s continued commitment to help lower-wage workers.
The amount of AVC bonus was decided after following close consultation with the public sector unions as well as the Ministry of Trade and Industry’s (MTI) forecast regarding Singapore’s economy. MTI has forecasted that the economy will grow by 3.0 percent to 3.5 percent in 2018 and the labour market has seen continued improvement in the first half of 2018. Total employment grew, more job vacancies were available and retrenchments declined.
Around 1,380 civil servants will benefit from the minimum AVC payment of $1,800. For example, an officer earning a monthly salary of $1,500 will get a year-end AVC of $1,800. This is $300 more than what he would get at 1 month of his monthly salary (which would have been $1,500).
In July 2018, civil servants received a mid-year AVC of 0.5 months and a one-off lump sum payment of $300, with a higher lump sum of $500 for lower-wage civil servants in Grades IV and V of the Operations Support Scheme. Together with the mid-year AVC, civil servants will receive a full-year AVC of 1.5 months.
All civil servants will also get the Non-Pensionable Annual Allowance (NPAA) of 1 month, to be paid in December together with the AVC.