Civil servants to get year-end AVC of 1 month. Lower-wage civil servants to get minimum year-end AVC of $1,800.
The Ministry of Trade and Industry has forecasted that the economy will grow by 3.0% to 3.5% in 2018. The labour market continued to improve in the first half of 2018. Total employment grew, more job vacancies were available and retrenchments declined.
Against this backdrop and in close consultation with the public sector unions, 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 lower-wage workers.
Around 1,380 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).
In July 2018, civil servants received a mid-year AVC of 0.5 months and a one-off lump sum payment of $300, with a higher lump sum of $500 for lower-wage civil servants in Grades IV and V of the Operations Support Scheme. Together with the mid-year AVC, civil servants will receive a full-year AVC of 1.5 months.
All civil servants will also get the Non-Pensionable Annual Allowance (NPAA) of 1 month, to be paid in December together with the AVC.