In total, civil servants will receive 0.9 month in full-year Annual Variable Component for 2023.
All civil servants in Singapore will receive a year-end Annual Variable Component (AVC) of 0.6 month in 2023.
As announced by the Public Service Division (PSD), in close consultation with the public sector unions, this year-end payment takes into consideration that Singapore’s Gross Domestic Product (GDP) is expected to come in at around 1% in 2023, as well as the latest National Wages Council (NWC) guidelines. The Ministry of Trade and Industry has further narrowed the GDP growth forecast range of 0.5%-1.5% to "around 1%" for 2023, after taking into consideration the labour market outlook, subdued external demand for the rest of the year, and continued downside risks arising from geopolitical tensions.
Details on the upcoming payout
In line with the NWC’s recommendations, the Government will continue to adopt a progressive approach in determining the AVC for civil servants. Thus, civil servants in grades equivalent to MX13(I) and MX14 will receive an additional lump sum of S$400 while civil servants in grades equivalent to MX15 and MX16, and those in the OSS will receive a higher lump sum of S$800.
In total, civil servants will receive 0.9 month in full-year AVC for 2023; and officers up to MX13(I) and equivalent will receive an additional lump sum of up to S$1,200 in 2023. The PSD also shared that the Government will continue to pay the Non-Pensionable Annual Allowance (13th month) equivalent to one month's pay to all civil servants.
In response to the announcement, NTUC Deputy Secretary-General Cham Hui Fong, as well as General Secretary Sanjeev Kumar Tiwari from the Amalgamated Union of Public Employees (AUPE), have shared their views.
Cham Hui Fong, Deputy Secretary-General, National Trades Union Congress (NTUC) said: "Despite challenging external socio-political and economic factors, the negotiations and decisions on the year-end AVC payout for civil servants between the public sector unions and PSD, were concluded with much consideration and goodwill to recognise the efforts of our civil servants.
"The additional one-off lump sum payments for lower grade officers in the civil service is much appreciated by the unions too. This is especially so when the payments, which would benefit these officers more, are in line with the recommendations of the National Wages Council guidelines for 2023/24.
Looking ahead, NTUC urges civil servants to continue to do their best in their areas of work to support their respective agencies and focus on reskilling and upskilling so that they can have better work prospects and remain employable.”
Sanjeev Kumar Tiwari, General Secretary, Amalgamated Union of Public Employees (AUPE) added: "While recognising the slower growth in our economy, the ongoing geopolitical challenges, and the cost pressures affecting our public officers' livelihood, the Government in consultation with the Amalgamated Union of Public Employees (AUPE) and the public sector unions, has arrived at a year-end AVC payout similar to payouts in years with poorer economic growth.
"We believe the year-end AVC of 0.6 month and lump sums, coupled with the Assurance Package, will help defray some of the rising cost of living for our public officers. AUPE will continue to work with the government in monitoring the situation and ensuring that our public officers will be adequately recognised for their good work."
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