Civil Service Mid‑Year Payments 2017
Civil Service Mid-Year Payments
Mid-Year Annual Variable Component of 0.5 month.
Lower-wage civil servants to receive a built-in wage increase of up to $20 in monthly salary, over and above their annual increment in 2017.
The Singapore economy grew by 2.7% in the first quarter of 2017 and is expected to grow by 1.0% to 3.0% for the full year1. Labour demand is expected to remain uneven across sectors in 2017. Total employment growth has moderated, while the unemployment rate has trended upwards 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 0.5 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 receive a built-in wage increase of $15 and $20 respectively. This will be in addition to their annual increment in 2017. It signals the Government’s continued commitment to raise the salaries of lower-wage civil servants2. Around 1,485 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 payments were decided in close consultation with the public sector unions, and will be made in July 2017.
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 2017.
 This is based on MTI’s press release “MTI maintains 2017 GDP growth forecast at 1.0 to 3.0 per cent”, issued on 25 May 2017.
 While $15 and $20 are lower than NWC’s recommendation of $45 to $60 for those earning up to $1,200, all civil servants already earn above $1,200.Factsheet