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Civil servants to receive 0.5-month mid-year bonus

The Public Service Division said on Friday (June 13) the mid-year Annual Variable Component and built-in wage increase for lower-wage officers will be paid in July. 

SINGAPORE: The Government on Friday (June 13) announced a mid-year Annual Variable Component (AVC) of half a month for civil servants.

In addition, there will also be a built-in wage increase of S$70 for Division IV officers and S$30 for Division III officers in their monthly salaries. The wage increases will benefit some 9,000 employees, according to the Public Service Division (PSD) statement released today. 

"The Government supports the National Wages Council's recommendations to grant a built-in wage increase to raise the wages of low-wage workers. This (built-in wage increase) signals the Government's continued commitment to help raise the salaries of lower-wage civil servants, in line with productivity growth and private sector salary benchmarks," the PSD stated. 

The PSD made the decision on the mid-year bonus amid a tight labour market at 2.1 per cent unemployment rate as of March 2014, and a market expected to grow between 2 and 4 per cent this year.

The mid-year AVC and built-in wage increase for Division IV and III officers will be paid in July. 

The National Trades Union Congress (NTUC) and its seven affiliated civil service unions welcomed the move to reward civil servants for their contributions in light of the country's "good economic performance" in the first quarter of 2014.

It said in a statement on Friday: "In particular, we applaud the special and continued attention given to the lower-waged officers of the civil service. We also call on the PSD to continuously review the wages of the lower-waged officers to ensure they enjoy real and sustainable wage growth." 

Mr Ma Wai Cheng, General Secretary of the Amalgamated Union of Public Employees (AUPE), added that the mid-year payment is "fair" given Singapore's economic performance this year. 

"We are also heartened by the PSD’s granting of built-in wage increases of $30 and $70 for Division III and Division IV officers and are glad that our civil servants are being rewarded for their hard work,” Mr Ma added.

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