SINGAPORE - Civil servants will get a year-end bonus of 0.8 month this year, with the minimum payout set at $1,200 to benefit lower-wage officers, the Public Service Division (PSD) said on Tuesday.

This is down from last year, when civil servants received a year-end bonus of 1.1 months with a minimum payout of $1,600.

The lower bonus comes as the Government forecast on Tuesday that the economy will grow about 3 per cent this year, compared with last year's 3.9 per cent growth.

Together with a mid-year bonus of 0.5 months, as well as a traditional 13th month bonus that will be paid in December, civil servants will get a total bonus payout this year of 2.3 months - lower than last year's total of 2.5 months.

The labour movement welcomed the PSD's announcement on the end-year payout, with the National Trades Union Congress (NTUC) calling it a "fair" amount.

"We are heartened with the fair payout this year," said NTUC assistant secretary-general Cham Hui Fong.

She said NTUC is particularly pleased by the "continued focus" on low-wage employees. Some 980 lower-wage civil servants will benefit from the $1,200 minimum payment, said the PSD.

"This signals the PSD's commitment to helping our lower wage officers," she added.

Ms Cham said the payouts were a result of several rounds of close consultations and negotiations between representatives from the public sector unions and the PSD.

Mr G Muthukumarasamy, the general secretary of the Amalgamated Union of Public Daily Rated Workers (AUPDRW), said: "AUPDRW understands that because of Singapore's slower economic growth, this year's AVC is slightly lower than last year's."

He added: "But even with the narrowed gross domestic product, the Government has still given us a good end-year package and we are therefore very grateful and thankful to them. All of our members will be very happy with this payout."