Civil servants to receive 0.3-month mid-year bonus; one-time payment for junior grade officers

SINGAPORE: Civil servants in Singapore will receive a 0.3-month mid-year bonus. Junior grade officers will get an additional one-time payment of up to S$400 (US$298), the Public Service Division (PSD) announced on Monday (Jun 19). 

Civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of S$200. Those in grades equivalent to MX15 and MX16, as well as those in the Operations Support Scheme (OSS) Grades III and IV will receive a higher one-time payment of S$400.

"This mid-year payment takes into consideration the weakened economic outlook and significant downside risks that remain in the global economy," said PSD. 

Last year, civil servants received a 0.35-month mid-year bonus and a 1.1-month year-end bonus, as well as the non-pensionable annual allowance of one month, also known as the 13th-month bonus.

Junior grade officers also received an additional S$200 or S$400 as part of the mid-year bonus, and S$700 at the end of 2022.

Singapore's economy expanded by 0.4 per cent on a year-on-year basis in the first quarter of 2023, moderating from the 2.1 per cent expansion in the preceding quarter.

The Ministry of Trade and Industry has maintained a GDP growth forecast of 0.5 per cent to 2.5 per cent for 2023, with growth likely to come in at around the mid-point of the forecast range.

"The assessment is that Singapore’s external demand outlook for the rest of the year has weakened and downside risks have risen," PSD said on Monday.

"The downside risks include the impact of tighter global financial conditions and the risk of further escalations in geopolitical tensions."

The labour market continued to expand in the first quarter of 2023, albeit at a more moderated pace compared to the previous quarter. Total employment expanded for the sixth consecutive quarter, and unemployment rates remained low.

The public service employs about 150,000 public officers working in 16 ministries and more than 50 statutory boards. 

"In deciding the year-end annual variable component payments, the government will continue to monitor the economic situation closely, and take into consideration the guidelines by the National Wages Council which will be released later in the year," PSD said.

Ms Cham Hui Fong, deputy secretary-general of the National Trades Union Congress (NTUC) said that amid the economic slowdown and some uncertainties ahead, the labour union negotiated and agreed on terms of the mid-year bonus and one-time payment, especially for lower grade officers.

The 0.3-month mid-year bonus is a "cautious and fair amount to recognise the contributions of all our civil servants’ continued efforts", said Ms Cham.

"NTUC continues to emphasise the importance of training where employees should reskill and upskill themselves. This is so they can have better work prospects and remain employable," she added.

Mr Sanjeev Kumar Tiwari, general secretary of the Amalgamated Union of Public Employees (AUPE), said that the union agreed with the government in adopting a cautious view given the economic slowdown, with a "slightly conservative" mid-year bonus.

"We will continue to monitor the economic situation and hope for better outcomes at the end of the year. We will continue working with the government to provide greater recognition for our officers," he added.