0.3-month mid-year bonus for the Civil Service;
Civil servants in more junior grades to receive one-time payment of $350 or $700.
The Singapore economy is expected to recover this year in tandem with the global economy and progress in our domestic vaccination programme. However, significant downside risks remain, including uncertainty over the trajectory of the COVID-19 pandemic. Against this context, the Government, in close consultation with the public sector unions, will pay all civil servants a mid-year bonus of 0.3 months. Civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of $350, while those in grades equivalent to MX15 and MX16, and the Operations Support Scheme (OSS) Grades III to V, will receive a higher one-time payment of $700.
Following the unprecedented economic crisis in 2020, Singapore’s economy and labour market have seen positive developments in the first quarter of 2021. The Singapore economy expanded by 1.3 per cent on a year-on-year basis in the first quarter of 2021, a reversal from the 2.4 per cent contraction in the previous quarter. In addition, total employment, overall unemployment and total retrenchments have seen consecutive positive improvements quarter on quarter. Since February, the external economic environment has also improved.
However, significant downside risks remain. Countries around the world are experiencing recurring waves of infections, with the emergence of more transmissible strains of the virus. Domestically, despite COVID-19 generally being under control and the progress that we are making in vaccinating our population, there remain significant risks and uncertainties in our own COVID-19 situation. The Ministry of Trade and Industry has therefore maintained a GDP growth forecast of “4.0% to 6.0%” for 2021. The pace of recovery is also expected to be uneven across various sectors of the economy.
Recognising the tireless efforts of civil servants while bearing in mind the overall economic situation, the Government, in close consultation with the public sector unions, has decided to pay all civil servants a mid-year Annual Variable Component (AVC) of 0.3 months. In addition, taking a progressive approach to the mid-year payment, civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of $350 and civil servants in junior grades equivalent to MX15 and MX16, as well as OSS Grades III to V, will receive a higher one-time payment of $700.
The Government will continue to monitor the economic situation closely. In deciding on the year-end AVC payments, the Government will take into consideration the guidelines by the National Wages Council which will be released later in the year.
We deeply appreciate the hard work and perseverance of all public officers in the fight against COVID-19. The Public Service continues to stand in solidarity with Singaporeans and we will emerge as a stronger Singapore.