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Government Grants S$70 Million Bonus to Civil Servants for SG50

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UPDATE: 82,000 civil servants will received the SG50 S$500 bonus, bringing the total spending by the government to some S$41m.

All civil servants will receive a one-off S$500 bonus to mark Singapore’s 50th birthday.

This was announced today (17 Jun) by the Public Service Division.

There are currently 139,000 civil servants employed across 16 ministries, which brings the total amount of bonus to some S$70 million.

Apparently, the bonus was given in the wake of Singapore’s economic growth.

The Singapore economy grew by 2.6% on a year-on-year basis in the first quarter of 2015, faster than the 2.1% growth in the preceding quarter.

The Ministry of Trade and Industry forecasts a GDP growth of 2% to 4% for 2015.

This is the PSD’s full statement:

The Singapore economy grew by 2.6% on a year-on-year basis in the first quarter of 2015, faster than the 2.1% growth in the preceding quarter. Global economic growth in 2015 is expected to come in marginally better than in 2014, but the pace of growth is likely to be uneven across economies. Given the expected improvement in global economic conditions in 2015, externally-oriented sectors are likely to see improved growth prospects. However, sector-specific factors could weigh on the growth of some sectors. Taking these factors into account, the Ministry of Trade and Industry forecasts a GDP growth of 2% to 4% for 2015, barring the materialisation of downside risks. On the labour front, unemployment remained low as the labour market remained tight. Employment contracted in the first quarter of 2015 amid seasonal declines and sharper moderation in employment growth in the manufacturing and construction sectors and segments of the services sector.

 Against this backdrop, the Government has decided to pay a mid-year Annual Variable Component (AVC) of 0.5 month.

 The Government also supports the National Wages Council’s (NWC) wage recommendations for low-wage workers. The Government will give a built-in wage increase of $30 in the monthly salaries of all Division IV civil servants. This will be in addition to their annual increment in 2015, and signals the Government’s continued commitment to help raise the salaries of low-wage civil servants. Around 2,500 Division IV civil servants will benefit from the wage increase.

 The Government will give a special one-off SG50 payment of $500 to all civil servants, in recognition of their contribution towards nation building.

 The mid-year AVC, special one-off SG50 payment, and built-in wage increase for Division IV civil servants will be paid in July 2015.

 The mid-year payments were decided in close consultation with the public sector unions.

 The Government will decide on the year-end AVC payment for civil servants after taking into consideration Singapore’s economic performance in the second half of 2015. 

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