Singapore's Public Service Division (PSD) has just announced a mid-year Annual Variable Component (AVC) of 0.5 month and a one-off lump sum payment of $300 for all civil servants. Civil servants will receive these payments in July 2018.

A press statement revealed that lower-wage civil servants in Grades IV and V of the Operations Support Scheme (OSS) to receive a higher lump sum of $500.

Additionally, the PSD has introduced a built-in wage increase of $20 for civil servants in Grade V of the OSS, in addition to their annual increments.

The statement noted that the payments "signal the government's continued commitment to support our lower-wage civil servants. Around 1,450 civil servants will benefit from the higher lump sum payment."

The decision was taken against a backdrop of a growing local economy as well as taking into consideration the NWC’s recommendations. Based on preliminary estimates, the Singapore economy grew by 4.4% in the first quarter of 2018 and is expected to grow by 2.5% to 3.5% for the full year.

As for the year-end AVC payment for civil servants, the government will decide on it after taking into consideration Singapore’s economic performance in the second half of 2018.

On the payments, Cham Hui Fong, assistant secretary-general, National Trades Union Congress (NTUC) commented: "The NTUC is glad that our civil servants will receive a mid-year annual variable component (AVC) of 0.5 month and a lump sum of $300, while our lower wage civil servants will receive a higher lump sum of $500.

"With the strong economic forecast for 2018 and the stark improvement in our workers’ productivity, from 1.8% in 2016 to 4.5% in 2017, the payout package signals the PSD's recognition of the hard work and effort put in by our civil servants over the last few years.

"To our workers, we hope that this AVC will encourage them to continuously strive for higher productivity and provide better services to the public. We also hope that our private sector companies will take cue to reward their workers duly and fairly."

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