Govt to pay civil servants mid-year AVC of 0.5 month in July
By Pearl Forss, Channel NewsAsia | Posted: 01 June 2007 1902 hrs

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SINGAPORE : Civil servants will be getting a half-month mid-year Annual Variable Component (AVC) in July.

On top of that, they will also receive an additional S$220 in July, which is a payment in line with the call by the National Wages Council (NWC) for employers to help low-wage workers.

This is light of Singapore's better-than-expected economic performance.

The 2007 GDP growth forecast was originally 4.5 to 6.5 percent but has since been upwards to between 5 and 7 percent.

Responding to the announcement, the NTUC said this year's AVC was concluded after consultation between NTUC representatives and civil service unions with the Public Service Division (PSD).

And they are pleased that the PSD had decided to reward lower-wage civil servants more adequately.

NTUC added that they hoped the private sector will take the cue from the civil service to reward workers appropriately, ensuring that built-in wage increases would be sustainable in the long-run and lag behind productivity growth, and to pay particular attention to lower-wage workers.

NTUC also said the move was in line with the NWC's recommendations to use variable payments to reward workers and to grant a special bonus to reward workers during good economic performances.

The government will decide on the year-end AVC payment for civil servants when Singapore's economic performance in the second half of 2007 is clearer. - CNA/ms