Civil servants to get 0.8 month year-end bonus

November 26, 201411:46 am481 views
Civil servants to get 0.8 month year-end bonus
Civil servants to get 0.8 month year-end bonus

SINGAPORE: A total of 82,000 civil servants in the Republic will receive 1.8 months’ worth of bonus at the end of the year. This consists of a 0.8-month variable bonus plus the annual 13-month bonus, the Public Service Division (PSD) announced on Tuesday (Nov 25).

The PSD announced that the year-end Annual Variable Component (AVC) will amount to 0.8 month, with lower-wage officers receiving an AVC of at least S$1,200. The year-end bonus is down from the 1.1 months given out at the end of 2013, when lower-wage officers received at least S$1,600.

Together with their AVC, civil servants will receive the Non-Pensionable Annual Allowance – commonly known as the 13-month bonus – of one month, to be paid in December, according to the PSD.

“The Ministry of Trade and Industry has forecast that GDP growth will come in at around 3.0 per cent for the full year. This represents a narrowing of the previous GDP forecast of 2.5 to 3.5 per cent announced in August,” said the PSD.

“Growth for the year is expected to be supported primarily by externally-oriented sectors such as manufacturing, wholesale trade, and finance and insurance services, while domestically-oriented sectors such as business services are expected to remain resilient. The job market remained tight in the third quarter of 2014, as unemployment stayed low and steady, with employment growth matching the previous quarter.

“Against this backdrop, civil servants will be paid a year-end Annual Variable Component (AVC) of 0.8 month, with lower-wage officers getting an AVC of at least S$1,200. This signals the Government’s continued commitment to help lower-wage workers.”

About 980 civil servants will benefit from the minimum AVC payment of S$1,200, the PSD added. “For example, an officer earning a monthly salary of S$1,200 will get a year-end AVC of S$1,200. This is S$240 more than what he would get at 0.8 month of his monthly salary (which would have been S$960),” the PSD said.

NTUC ON BONUS: “WE ARE HEARTENED”

“The payouts were a result of several rounds of close consultations and negotiations between representatives from the public sector unions and the Public Service Division, taking into account Singapore’s economic performance and the National Wages Guidelines for 2014/15,” National Trades Union Congress Assistant Secretary-General Cham Hui Fong said in the statement.

“The Labour Movement welcomes the Public Service Division’s announcement on the end-year payout. While Singapore’s growth forecast has narrowed, we are heartened with the fair payout this year. In particular, we are pleased that continued focus has been placed on the Division 3 and 4 employees. This signals the PSD’s commitment to helping our lower wage officers.”

Other unions also said the payout is also an acknowledgement of the employees’ hard work and dedication to public service.

Mr Ma Wei Cheng, General Secretary of Amalgamated Union of Public Employees, said the S$240 difference would be “substantial” to the lower wage workers.

“We are of course very mindful about the lower wage workers and that is why we are always pressing that the lower wage workers should have a dollar cap and not subjected to the percentage cap, because if it is 0.8 month and if the salary is lower, it may not be much to them and if they are subjected to a dollar cap, then we know for sure that they will have a higher sum. This is important to us as trade unions,” he said.

Mr G Muthukumarasamy, General Secretary, Amalgamated Union of Public Daily Rated Workers (AUPDRW) said: “AUPDRW understands that because of Singapore’s slower economic growth, this year’s AVC is slightly lower than last year’s. Even with the narrowed GDP, the Government has still given us a good end-year package and we are therefore, very grateful and thankful to them. All of our members will be very happy with this payout.”

The year-end bonus announced comes on top of a 0.5-month mid-year AVC, bringing the total in variable bonuses to 1.3 months for the year – down from the 1.5 months’ given out in 2013.

 

news source & image credits: channelnewsasia.com

Read more HR NEWS in ASIA

(Visited 1 times, 1 visits today)