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Civil servants in junior grades to get higher year‑end payment

2 December 2019

  1. Taking into account the prevailing economic uncertainties, the Public Service Division, in consultation with and with the support of the public sector unions, will exercise restraint for the year-end bonus payment. Senior civil servants in superscale grades will receive a one-off payment of $400 in place of year-end AVC. All other civil servants will receive a year-end AVC of 0.1 month and an additional one-off lump sum payment of $250 to $1,500, with civil servants in the lower pay grades receiving a higher amount.

  2. The Ministry of Trade and Industry has forecasted that the economy will grow by 0.5% to 1.0% in 2019, with the growth for 4Q2019 expected to remain modest. While the labour market saw a growth in total employment, unemployment inched up and retrenchments rose over the quarter.

  3. Against the backdrop of economic uncertainties, senior civil servants will receive a one-off payment of $400 in place of the year-end Annual Variable Component (AVC)[1]. All other civil servants will receive a 0.1 month year-end AVC and an additional one-off lump sum payment of $250 to $1,500 according to the pay grades of the respective officers. Around 2,200 civil servants in Grades III to V of the Operations Support Scheme (OSS) will receive the highest lump sum amount of $1,500.

  4. This approach was agreed upon in close consultation with the public sector unions to give the strongest support to civil servants in the junior grades, in view of the uncertain economic climate.

  5. All civil servants will also receive the Non-Pensionable Annual Allowance (NPAA – 13th month bonus) of 1 month, to be paid in December together with the year-end AVC and lump sum payments.

[1] In July 2019, civil servants had received a mid-year AVC of 0.45 month and a one-off lump sum payment of $200, with a higher lump sum of $300 for civil servants in OSS Grades IV and V.

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