Singapore slashed civil servants' full-year bonus

A half-month bonus is only allotted at year-end.

Against a slowing economy, civil servants will be paid a year-end Annual Variable Component (AVC) of 0.50 month while lower-wage civil servants will get a minimum year-end AVC of $900. This signals the Government’s continued commitment to help low-wage workers.

Around 1,900 civil servants will benefit from the minimum AVC payment of $900. For example, an officer earning a monthly salary of $1,500 will get a year-end AVC of $900. This is $150 more than what he would get at 0.50 month of his monthly salary (which would have been $750).

Together with the mid-year AVC of 0.45 month in July 2016, civil servants will receive a full-year AVC of 0.95 month in 2016. This is 0.20 month lower than last year’s full-year AVC of 1.15 months (with a minimum year-end payment of $1,100).

The lower AVC is in line with the lower economic growth for 2016 compared with 2015. The year-end AVC payment (including the minimum payment) was decided in consultation with the public sector unions.

All civil servants will also get the Non-Pensionable Annual Allowance (NPAA) of 1 month, to be paid in December together with the AVC.

The Singapore economy grew by 1.1% on a year-on-year basis in 3Q16, slower than the 2.0% growth in the previous quarter. The Singapore economy grew at a slower pace of 1.7% in the first three quarters of 2016, compared to 2.1% over the same period a year ago. Taking into account the global and domestic economic environment, the Ministry of Trade and Industry has forecast that the economy will grow by 1.0% to 1.5% for the whole of 2016.