Civil servants in Singapore to receive a mid-year AVC of 0.35 month

Further, civil servants in junior grades equivalent to MX15 and MX16, and those in OSS Grades III to V will receive a one-time payment of S$400.

Singapore's Public Service Division (PSD), on 20 June 2022 (Monday), announced its decision to pay all civil servants a mid-year annual variable component (AVC) of 0.35 month. This move, according to its statement, was confirmed after "close consultation" with the public sector unions, and dubbed as "a progressive approach" considering the uncertainties in the local and global market.

As further explained, civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of S$200, while civil servants in junior grades equivalent to MX15 and MX16, and those in OSS Grades III to V will receive a higher one-time payment of S$400.

This mid-year payment takes into consideration that Singapore’s GDP growth in 2022 is likely to come in at the lower half of the forecast range of 3% to 5%.

Cham Hui Fong, Deputy Secretary-General, National Trades Union Congress (NTUC) shared her sentiments: "Singapore’s economy is recovering with the resumption of activities post-pandemic, but we are also cognisant of the economic uncertainties looming amidst geo-political tensions and the global supply disruptions. The 0.35 months of mid-year annual variable component (AVC) payout is a timely recognition of our civil servants' dedication in serving the people during the pandemic period."

She, on that note, added that the union supports the PSD’s announcement of the mid-year AVC and lump sum payments for the junior officers.

Sanjeev Kumar Tiwari, General Secretary, Amalgamated Union of Public Employees (AUPE) concurred with her sentiments. He said that the union is agreeable with the Government’s decision to provide a mid-year AVC for Singapore's civil servants, to appreciate their good work and contributions.

"Given the current economic uncertainties, geopolitical tensions and inflationary pressures, we appreciate the moderate increase in the mid-year AVC compared with last year's mid-year AVC, with more for the junior and lower income officers. We hope that things will turn around so that there will be better outcomes at the end of the year," GS Sanjeev added.

With regard to the year-end AVC payments, it was explained in the statement that the Government will "continue to monitor the economic situation closely", and take into consideration the National Wages Council’s guidelines, which will be released later in the year, before coming to a decision.

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