Against the backdrop of economic uncertainties, the Public Service Division (PSD) has decided to exercise restraint for the year-end bonus payment.

It announced yesterday that civil servants will receive a year-end Annual Variable Component (AVC) of 0.1 month. This marks a reduction from 2018, where a 1-month bonus was received.

The biggest bonus cuts will come from senior civil servants in superscale pay grades. Civil servants in these grades will receive a one-off payment of $S400 in place of a year-end AVC.

Additionally, all other civil servants (except those in the superscale grades) will receive a one-off lump sum payment of S$250 to S$1,500 according to the pay grades. Those in the lower pay grades will receive a higher amount. Around 2,200 civil servants in Grades III to V of the Operations Support Scheme (OSS) will receive the highest lump sum amount of S$1,500.

The approach was agreed upon in close consultation with the public sector unions to give the strongest support to civil servants in the junior grades, in view of the uncertain economic climate.

All civil servants will also receive the Non-Pensionable Annual Allowance (NPAA – 13th month bonus) of 1 month, to be paid in December together with the year-end AVC and lump sum payments.

The Ministry of Trade and Industry has forecasted that the economy will grow by 0.5% to 1.0% in 2019, with the growth for 4Q 2019 expected to remain modest. While the labour market saw a growth in total employment, unemployment inched up and retrenchments rose over the quarter.

Photo / iStock

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