Bonuses of Civil Servants in Singapore Has Declined by 28% in the Last Decade

December 5, 201610:00 am371 views

According to the year-end bonus figures announced by the Public Service Division for civil servants in Singapore this year, the bonuses offered have been considerably low than that of last year as well.

In 2016, the civil servants can expect to receive a bonus of 1.5 months (including the usual 13th month of bonus) and 0.45 months of mid-year bonus, which sums up to a total of 1.95 months of bonus this year. This is 0.2 month’s lower than the 2015’s figures.

In 2015, civil servants received a total of 2.15 months of bonus, which is inclusive of its mid-year bonus of 0.5 months. The deflated rates this year is reflective of a general deflation of Singapore’s economy that saw a drop of 0.9 percent of economic growth (1.1 percent in 2016 and 2 percent in 2015) in this year’s quarter as compared to the last.

The Singapore economy grew at a slower pace of 1.7 percent in the first three quarters of 2016, compared to 2.1 percent over the same period a year ago. Taking into account the global and domestic economic environment, the Ministry of Trade and Industry has forecast that the economy will grow by 1 percent to 1.5 percent for the whole of 2016.

Against this backdrop, civil servants will be paid a year-end Annual Variable Component (AVC) of 0.50 month. Lower-wage civil servants will get a minimum year-end AVC of $900. This signals the Government’s continued commitment to help low-wage workers.

Around 1,900 civil servants will benefit from the minimum AVC payment of $900. For example, an officer earning a monthly salary of $1,500 will get a year-end AVC of $900. This is $150 more than what he would get at 0.50 month of his monthly salary (which would have been $750).

Together with the mid-year AVC of 0.45 month in July 2016, civil servants will receive a full-year AVC of 0.95 month in 2016. This is 0.20 month lower than last year’s full-year AVC of 1.15 months (with a minimum year-end payment of $1,100).

The lower AVC is in line with the lower economic growth for 2016 compared with 2015. The year-end AVC payment (including the minimum payment) was decided in consultation with the public sector unions.

All civil servants will also get the Non-Pensionable Annual Allowance (NPAA) of 1 month, to be paid in December together with the AVC.

This move was applauded by the workers union with Ms. Cham Hui Fong, assistant secretary-general of the National Trades Union Congress (NTUC) stating, “While the total payout package is ‘relatively lower than recent years’, the labour movement and public sector unions are ‘supportive’ of the lower quantum, [and it] fairly reflects the Government’s financial prudence while taking into account the recommendations by the National Wages Council,” Asia One reports.

Hence, with the hardly awe-inspiring bonus package for civil servants in 2016, the rest of the workforce can expect to receive humble bonus offerings this year.

 

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