SINGAPORE: Civil servants in Singapore will receive a 0.4-month mid-year Annual Variable Component (AVC) bonus, the Public Service Division (PSD) announced on 16 June 2025.
In addition, junior-grade officers will be given a one-time payment of up to S$400.
The bonus amount follows close consultation with public sector unions and reflects the current economic performance and labour market outlook.
Civil servants in grades equivalent to MX13(I) and MX14 will receive an additional one-time payment of S$250.
Those in lower grades—MX15, MX16, and the Operations Support Scheme—will receive a higher one-time payment of S$400.
The PSD stated that these figures were decided based on Singapore’s first quarter economic performance and the anticipated challenges for the rest of 2025.
Singapore’s economy expanded by 3.9 per cent in the first quarter on a year-on-year basis. However, the Ministry of Trade and Industry has kept its GDP growth forecast for the year at between 0.0 and 2.0 per cent.
This cautious outlook is attributed to continued global economic uncertainty and risks that remain skewed to the downside.
On the labour front, advance data from the Ministry of Manpower showed moderating labour demand.
Although employment continued to grow in the first quarter of 2025, the pace has slowed, and unemployment rates have edged up slightly since December 2024.
The Ministry expects further softening of the labour market due to weakening business sentiment.
In this context, the Government’s decision to provide a smaller mid-year AVC compared to the previous year reflects a progressive approach.
In 2024, civil servants received a mid-year bonus of 0.45 months and a year-end bonus of 1.05 months.
By contrast, the 2023 mid-year bonus was 0.3 months.
The PSD also noted that the Government and public sector unions will continue to jointly assess economic developments throughout the year.
The final decision on the year-end AVC will take into account the guidelines to be issued by the National Wages Council later this year.
This monitoring ensures that bonuses are aligned with the broader economic context and provide adequate support, particularly for lower-wage civil servants.
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