Civil Service Mid‑year Payment 2016

Civil Service Mid-year Payment

Mid-year Annual Variable Component of 0.45 month

In addition: Low-wage civil servants to receive a built-in wage increase of up to $25 in monthly salary, over and above their annual increment in 2016.

The Singapore economy grew by 1.8% in the first quarter of 2016 and is expected to grow by 1.0% to 3.0% for the full year, amidst a weaker global economic outlook1. Labour demand is expected to be uneven across sectors in 2016. While the unemployment rate has remained low, employment growth has slowed and redundancies are expected in some sectors as the economy restructures.

Against this backdrop, the Government has decided to pay a mid-year Annual Variable Component (AVC) of 0.45 month.

The Government also supports the National Wages Council’s (NWC) wage recommendations for low-wage workers. Civil servants in Grades IV and V of the Operations Support Scheme (OSS) will get a built-in wage increase of $20 and $25, respectively. This will be in addition to their annual increment in 2016. It signals the Government’s continued commitment to help raise the salaries of low-wage civil servants2. Around 1,500 civil servants will benefit from the built-in wage increase. A worked example of the built-in wage increase can be found in the attached factsheet.

The mid-year AVC and the built-in wage increase for civil servants will be paid in July 2016.

The mid-year payments were decided in close consultation with the public sector unions.

The Government will decide on the year-end AVC payment for civil servants after taking into consideration Singapore’s economic performance in the second half of 2016.

[1] This is based on MTI’s press release “MTI maintains 2016 GDP growth forecast at 1.0 to 3.0 percent”, issued on 25 May 2016.

[2] While $20 and $25 are lower than NWC’s recommendation of $50 to $65 for those earning up to $1,100, all civil servants already earn more than $1,100.

Factsheet

Worked Example: Worked Example: