SINGAPORE - All civil servants will receive a mid-year bonus of 0.45 month amid tougher economic conditions, the Public Service Division (PSD) said on Tuesday (June 14).
And about 1,500 civil servants who are paid lower wages will get an additional built-in pay hike of $20 to $25 a month, on top of their annual increment.
This year's mid-year bonus is slightly lower than the 0.5 month paid out last year (2015) and the year before (2014).
In a statement, the PSD noted that the Singapore economy grew by 1.8 per cent in the first quarter of 2016 and is expected to grow by 1.0 per cent to 3.0 per cent for the full year.
Labour demand is also expected to be uneven across sectors in 2016.
While the unemployment rate has remained low, employment growth has slowed and redundancies are expected in some sectors as the economy restructures, added the PSD.
The mid-year bonus and pay rises were decided in close consultation with public sector unions, and will take effect in July, said the PSD.
National Trades Union Congress assistant secretary-general Cham Hui Fong said: "Considering the slowdown in our economic growth, the payment fairly rewards civil servants for their dedication and contributions. We are also heartened that the Government took into consideration the National Wages Council recommendations to sustainably uplift the incomes of our lower wage workers."
The built-in pay rises for lower-paid civil servants are lower than what was recommended by the the NWC in May. The council had called for a built-in wage increase of $50 to $65 for low-wage workers earning a basic salary of up to $1,100 a month.
The PSD, acknowledging this, said that all civil servants earn more than $1,100.
Those who will benefit from the pay hike are Grade IV and Grade V officers in the Operations Support Scheme, who perform administrative support functions including registry duties and office maintenance.
Grade IV officers, who have a monthly salary of between $1,446 and $1,843, will get a built-in wage increase of $20.
Grade V officers under the same scheme will get $25. They earn between $1,205 and $1,536 a month.
The pay rises signal the Government's continued commitment to help raise the salaries of low-wage civil servants, said the PSD.
The Government will decide on the year-end bonus for civil servants after taking into consideration Singapore's economic performance in the second half of 2016.