Civil Service Mid‑year Payments 2015

Civil Service Mid-year Payments

Mid-year Annual Variable Component of 0.5 month and a special one-off SG50 payment of $500 for all civil servants

In addition: Division IV officers to receive a wage increase of $30 in monthly salary, over and above their annual increment in 2015.

The Singapore economy grew by 2.6% on a year-on-year basis in the first quarter of 2015, faster than the 2.1% growth in the preceding quarter. Global economic growth in 2015 is expected to come in marginally better than in 2014, but the pace of growth is likely to be uneven across economies. Given the expected improvement in global economic conditions in 2015, externally-oriented sectors are likely to see improved growth prospects. However, sector-specific factors could weigh on the growth of some sectors. Taking these factors into account, the Ministry of Trade and Industry forecasts a GDP growth of 2% to 4% for 2015, barring the materialisation of downside risks. On the labour front, unemployment remained low as the labour market remained tight. Employment contracted in the first quarter of 2015 amid seasonal declines and sharper moderation in employment growth in the manufacturing and construction sectors and segments of the services sector.

Against this backdrop, the Government has decided to pay a mid-year Annual Variable Component (AVC) of 0.5 month.

The Government also supports the National Wages Council’s (NWC) wage recommendations for low-wage workers. The Government will give a built-in wage increase of $30 in the monthly salaries of all Division IV civil servants. This will be in addition to their annual increment in 2015, and signals the Government’s continued commitment to help raise the salaries of low-wage civil servants[1]. Around 2,500 Division IV civil servants will benefit from the wage increase. A worked example of the wage increase can be found in the attached factsheet.

The Government will give a special one-off SG50 payment of $500 to all civil servants, in recognition of their contribution towards nation building.

The mid-year AVC, special one-off SG50 payment, and built-in wage increase for Division IV civil servants will be paid in July 2015.

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 2015.

[1] While $30 is less than NWC’s recommendation of $60 for those earning less than $1,100, all our Division IV civil servants already earn more than $1,100.