Civil Service Year-End Payment 2017

27 November 2017

Civil servants to get year-end AVC of 1 month. Lower-wage civil servants to get minimum year-end AVC of $1,800.

The Singapore economy grew by 5.2% on a year-on-year basis in 3Q17, higher than the 2.9% growth in the previous quarter. The Singapore economy grew at a faster pace of 3.5% in the first three quarters of 2017, compared to 1.7% over the same period a year ago. Taking into account the global and domestic economic environment, the Ministry of Trade and Industry has forecast that the economy will grow by 3.0% to 3.5% for the whole of 2017.

Against this backdrop, civil servants will be paid a year-end Annual Variable Component (AVC) of 1 month. Lower-wage civil servants will get a minimum year-end AVC of $1,800. This signals the Government’s continued commitment to help low-wage workers.

Around 1,490 civil servants will benefit from the minimum AVC payment of $1,800. For example, an officer earning a monthly salary of $1,500 will get a year-end AVC of $1,800. This is $300 more than what he would get at 1 month of his monthly salary (which would have been $1,500).

Together with the mid-year AVC of 0.5 month in July 2017, civil servants will receive a full-year AVC of 1.5 month in 2017. The AVC payment is in line with the more optimistic economic outlook for 2017 compared with 2016. The payment (including the minimum payment) was decided in consultation with the public sector unions.

All civil servants will also get the Non-Pensionable Annual Allowance (NPAA) of 1 month, to be paid in December together with the AVC.